Morgan Stanley's outlook on the US dollar has shifted to neutral
Morgan Stanley's view on the outlook for the US dollar has turned neutral. The bank stated that confidence in the currency's sustained strength has noticeably weakened. Morgan Stanley said investors seem to be accepting a mindset that the peak of hawkishness from the Federal Reserve would be enough to outweigh positive factors for the US dollar, such as unexpected upside in US economic growth, unexpected downside in overseas economic growth, or rising inflation in the United States. The bank added that it is harder to imagine a strong US dollar due to further declines in US interest rates compared to other countries.
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