EFTA Document EFTA01449344

16 May 2013 FX Blueprint: Dashing Buck outperformance precede dollar strength. The swing factor for a more pronounced dollar move, though, appears to be real interest rates. Their relentless decline since late 2008 did weigh on the dollar, but the picture has started to improve as real rates appear to be turning up (see first chart on this page). Earlier tapering by the Fed would likely cause a sharper move up in real yields, but even a further delay in tapering would unlikely cause re