Morgan Stanley Thinks The Dollar Has Further to Drop

Morgan Stanley Thinks the Dollar Has Funder to Drop – To Ranges Final Reachhed For the period of the Pandemic – Pressure Lower by Passion Rate Cuts and the Energy of Rival Currencies.

Strategists at the funding bank wrote in a legend printed over the weeks they they await a 9% tumble over the following 300 and sixty five days to a tag of 91 on the buck index.

The Index Measures the Tag In opposition to a Basket of Six Currencies: The Euro, Yen, Pound, Swiss Franc, Canadian Dollar, and Swedish Krona.

They Acknowledged the Dollar Had Declined Faster Than Seek data from of, Already Slumping to Its Year-Cease Target Tag of 101 Final Month. It Stood at 98.9 on Tuesday.

The Dollar’s Weak point is forecast to be Most Acute In opposition to Safe-Haven Currencies Such because the Euro, Yen, and Franc, Acciting to Morgan Stanley.

“We Judge Rates and Currency Markets web launched into Sizeable traits that will probably be sustained – taking the US buck Mighty Lower and Yields Curves Mighty Steeper – AFTER Two Years of Swing Wide Ranges,” The Strategists Acknowledged.

They forecast a upward push in the tag of the Euro In opposition to the buck to $ 1.25 and the pound to $ 1.forty five by Mid-2026.

The US Dollar Index has fallen more than 10% SINCE MID-JANUARY HIGHS OF ALOST 110 REACHED SOON BEFORE the inauguration of President Donald Trump and Essentially based on the Expectation of Rate by the Federal Reserve.

The Index Rose All yet again in February, but has SINCE Reverse Course Amid Trump’s Tariffs and Ensuing Replace Battle.

The strategists forecast the yield on 10 -ear treasurys to stand at 4% by the finish of this year. “Treasury Yields Stage a Larger Decline in 2026 As the Fed Delivers 175 Basis Elements of Rate Cuts on the Assist of Weaker Valid Snarl and Inflation Provocative to Target,” They Wrote.

Morgan Stanley Expects US GDP Snarl to Advance in 1% Both this year and in 2026. “Beyond Tariffs, Immigration Restrictions Also Weigh on US Snarl, whereas we are skeptical of Meaningful FROM Fiscal Policy or DerEgulation,” Its Economists Wrote.

The OECD SAID ON TUSDAY THAT The US Economic system Wold Extend by 1.6% in 2025, Down from previous forecast of two.8%.