The US Dollar Index (DX-Y.NYB) is cratering as it loses the war premium that had built up during the Iran conflict. It's on track for its third-biggest decline of the year, wiping out all of its gains since March 3, while the Bloomberg Dollar Spot Index has erased its entire 2026 advance.

That reversal is lighting a fire under risk assets, especially foreign markets that were hit hard when the dollar surged off its January lows. The iShares MSCI Emerging Markets ETF (EEM) is on track for its biggest jump since the post-"Liberation Day" surge on April 9, 2025.

The move is broad. South Korea (EWY) leads the world in country exchange-traded funds with a gain of more than 10%. Chile (ECH) is up 7%, while Taiwan (EWT), Turkey (TUR), the UAE (UAE), Mexico (EWW), Japan (EWJ), and India (INDA) are all up more than 5%.

Gold (GC=F) and copper (HG=F) futures are gaining 3%, while silver (SI=F) and platinum (PL=F) are surging 7%.

In other words, the dollar is no longer acting like a wrecking ball for global risk assets — at least for now.

Jared Blikre is the global markets and data editor for Yahoo Finance. Follow him on X at @SPYJared or email him at jaredblikre@yahooinc.com.

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