* Fed surprises with aggressive hike projections

* Dollar rides higher in Asia; S&P 500 futures wobbly

* Cenbank meetings ahead in Japan, Britain and Norway

By Tom Westbrook

SYDNEY, Sept 22 (Reuters) - The dollar surged to a fresh two-decade high against major peers and stocks fell on Thursday after the Federal Reserve raised U.S. interest rates and forecast more hikes ahead than investors had expected.

The euro sank to a 20-year low of $0.9810 after Russia ordered the mobilisation of reserve troops in an escalation of the war in Ukraine.

S&P 500 futures were down 0.6% and the dollar was flying in early trade. The dollar index hit a 20-year high of 111.65 and the greenback's strength sent the Aussie, kiwi and Canadian dollars down to fresh multi-year lows.

Sterling hit $1.1233, its lowest in 37 years. South Korea's won slid past the symbolic 1,400 per dollar mark for the first time since 2009. The Thai baht, Malaysian ringgit, Singapore dollar and Swedish crown all made major new lows.

Japan's Nikkei fell 1%. Hang Seng futures were flat, though the Golden Dragon index of U.S.-listed Chinese shares took a beating and fell 5.9% overnight.

The Fed raised rates sharply, by 75 basis points, on Wednesday - the third such rise in a row. That takes the bank's benchmark overnight rate target range to 3-3.25%.

Projections showed officials think rates are going higher and growth is going lower and the median forecast is for the funds rate to hit 4.4% this year - higher than markets had priced and 100 bps more than the Fed projected three months ago.

"The Fed is not going to stop any time soon and there's going to be an extended period of restrictive monetary policy for at least the next year or so," said Sally Auld, chief investment officer at wealth manager JB Were in Sydney.

"What else do you buy except for the U.S. dollar at the moment?" she added, with growth clouds over Europe, Britain and China and the yen tanking as Japan holds interest rates low.

The U.S. yield curve deepened its inversion in a volatile session overnight as short-end Treasuries sold and the longer end rallied as investors priced out the chance of a "soft" economic landing, and braced for damage to longer-run growth.

The two-year yield rose as high as 4.1230% and was last at 4.0848%, while the 10-year yield fell 6 bps to 3.5120%.

"The chances of a soft landing are likely to diminish to the extent that policy needs to be more restrictive, or restrictive for longer," Fed Chair Jerome Powell told reporters after the rate hike announcement.