Dollar Focuses on Normal Rather Than Crisis

Currency investors will shift their focus to economic growth from crisis now the Federal Reserve has signaled that U.S. banks no longer require acute emergency support.

Until recently, any sign of strength in the economic recovery in the U.S. prompted investors to sell dollars and buy higher-yielding assets, safe in the knowledge that dollar interest rates would remain ultralow for a while.

Now that the Fed has made a tangible move away from crisis mode, investors will watch a broad array of figures—from inflation to productivity gains and jobless claims—to gauge the strength of the recovery and the speed at which excess capacity is used up.

For more: Forex View: Dollar Focuses on Normal Rather Than Crisis - WSJ.com