LONDON—The dollar roared to a two-year high on Tuesday and the euro hit its weakest since March 2020 as concerns about the economic impact of China’s COVID-19 lockdowns and rising expectations for a big U.S. interest rate hike next week boosted the greenback.
With markets facing many risks, including central banks’ tightening policy, just as economic growth momentum slows, investors have been buying dollars.
The dollar index, which measures the U.S. currency against a basket of rivals, is on course for its largest monthly gain since January 2015.
On Tuesday it rose another 0.2 percent to 101.96.
The euro dropped 0.3 percent to $1.0673, its weakest since March 2020 when concerns about the spread of COVID-19 depressed markets.
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