Hawkish Fed, strong U.S. economy will keep dollar king of currencies

By Saqib Iqbal Ahmed

NEW YORK, FIFA World Cup Aug 25 (Reuters) – The U.S. dollar surged this year to its highest in two decades and there are still plenty of bulls betting the greenback has legs to keep climbing thanks to a hawkish Fed and FIFA World Cup economic news that should keep America ahead of other major economies.

The dollar is up about 13.5% this year against a basket of peers, on pace for its strongest year in nearly 40 years, while the euro has been crushed about 12% to below parity, a level untouched in two decades.

Lifted by the U.S.Federal Reserve aggressively hiking rates and buyers seeking a safe-haven asset from the Russia-Ukraine war and other areas of global uncertainty, the dollar has been a sure-fire bet for investors.