Investors grow more bullish on dollar even as index cracks records

Investors are more bullish on the Bloomberg dollar spot index than in any previous editions of the MLIV Pulse survey.

More than two thirds of the respondents in last week’s survey expect the index to gain, even as it’s already at a record. That’s the most since the survey first asked about the outlook for the greenback in April.

The index, which tracks the performance of 10 global currencies versus the US dollar, has gained almost 12% so far this year amid concerns over a global economic slowdown and rising interest rates in the US. This spectacular surge has also been fueled by a weakening Chinese yuan and a plummeting euro. The common currency has been pushed to 20-year low against the dollar after Russia’s decision last week to indefinitely shut down natural gas flows to Europe through the key Nord Stream pipeline.