Dollar Roars to Two-Year High on Growth Fears and Rate Bets

Dollar Roars to Two-Year High on Growth Fears and Rate Bets
U.S. dollar banknotes are displayed in this illustration taken, on Feb. 14, 2022. Dado Ruvic/Illustration/Reuters
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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.