Zhitong Finance APP noted that although the correlation between the US dollar and US stock levels this year has attracted much attention, strategists at Goldman Sachs Group believe that the more noteworthy connection lies in the relationship between the US dollar and the CBOE Volatility Index (VIX).

Over the past five years, the US dollar has typically shown a positive correlation with the VIX index, which is a common measure of the expected volatility of the S&P 500 index. When US stock market volatility increases, the safe-haven US dollar tends to strengthen, and vice versa. However, this relationship shifted early this year and has shown an opposite trend for most of 2025. If panic sentiment rises in the US stock market, the US dollar is likely to decline simultaneously.

A team at Goldman Sachs, including Michael Cahill and Karen Reichgott Fishman, pointed out on Wednesday: "Focusing solely on the relationship between foreign exchange and the S&P 500 obscures the lingering vulnerability of the US dollar, which has been more evident in its correlation with the VIX index in recent months."

Goldman Sachs emphasized the connection between the US dollar and stock market volatility, stating: "The decline in the US dollar's appeal is more apparent in its correlation with the VIX index, although recent movements appear more 'normal.'"