NEW YORK—A cocktail of global growth fears, Federal Reserve hawkishness and euro weakness has boosted the U.S. dollar to its highest level in around 20 years, and some investors are betting there may be more gains ahead.
The dollar index, which measures the greenback against six major currencies, is up 12 percent against a basket of its peers in 2022 and is on track for its best year since 2014. The measure has logged a gain 7 out of the last 10 years.
Multiple factors are driving the dollar’s gains. Investors believe the Federal Reserve is likely to continue raising interest rates more aggressively than many other global central banks as it faces the worst U.S. inflation in decades, making the dollar more attractive to yield-seeking investors….