EFTA Document EFTA01385959

27 March 2015 US Fixed Income Weekly Whither the dollar> The bigger issue for the economy and the financial markets is the dollar. To be sure, the Fed is worried about its recent appreciation, which has been the fifth fastest on record. It has been eclipsed only by the moves in 1981-1982, 1984-1985, 1997 and 2008-2009. In the case of the two 1980$ episodes, high real interest rates, which were induced by tight monetary policy, were the root cause of dollar appreciation. In 1997, the surge