Morgan Stanley Forecasts Decline in US Dollar Amid Economic Shift

Morgan Stanley predicts a weakening of the U.S. dollar as global economic shifts create greater confidence in the Federal Reserve’s potential interest rate cuts and align U.S. growth with other economies. This decline in demand for safe-haven assets and investor hedging activities is expected to place further pressure on the dollar. According to their forecast, the U.S. Dollar Index (DXY) will drop to 91.00 by mid-2026, a significant decline from its current level of 98.893, which has risen by 0.3%.