The US dollar reached a five-month high on Tuesday, extending its 4-5% gain since mid-July.

Despite sluggish Chinese and European growth, investors are bullish on the dollar due to rising US yields and falling equity prices.

Goldman Sachs Group reduced its US recession prediction from 20% to 15%. The US economy is surviving significant monetary tightening, with the strongest dollar against the euro and pound since July.

Options traders are anticipating strength, and investors can position for dollar appreciation.