Investors are increasing their bets on the US dollar long positions at a record pace.

Data from the U.S. Commodity Futures Trading Commission shows that investors are increasing their bets on the U.S. dollar at a record pace. The current speculative net long position in the U.S. dollar is approximately $30 billion, the highest level since President Trump's second term; the net increase in the first half of this year was around $37 billion, the fastest pace since the CFTC began recording data in 2012. "In the short term, as U.S. real interest rates rise, the dollar may continue to strengthen," said Joseph Purtell, portfolio manager at Neuberger. He believes the dollar may break out of the range of the past six to nine months, but added that in the long term, considering structural issues such as U.S. government fiscal sustainability, the dollar may weaken. Bank of America estimates that $341 billion has flowed into U.S. stocks so far this year, far exceeding the $134 billion in the same period last year.