As an EU based investor in US equities, i keep my eye on the â¬/$ exchange rate. I have noticed that the $index generally moves in the opposite direction to US stocks (more or less) So, when US stocks are rising, the $ is falling and vice versa. I would have thought that if US stocks are being sold, then some of the selling would be by foreigners and so the US$ should also fall somewhat. I have not researched this, only observing recent 6 month or so movements, so don't know how long this has existed I'm sure this is a basic error i'm making. What am i not understanding here, any thoughts please?