DXY — Surging equity inflows replace foreign demand for US debt, shifting dollar risk

A major shift in capital flows is underway, with foreign investor appetite for US equities surging while demand for US sovereign debt weakens, according to market analysis. The US attracted over $600 billion in net equity inflows in the year to March 2026, double the amount for government bonds, largely driven by the AI boom. This trend could alter the US dollar's traditional role as a safe-haven asset, making it more cyclical and leveraged to the fortunes of the tech sector.