Morgan Stanley Forecasts Dollar Decline Amidst Fed Rate Cuts

Morgan Stanley strategists predict a weakening of the U.S. dollar in the coming year, citing anticipated Federal Reserve rate cuts and their relative impact compared to those made by the European Central Bank. The decline is further fueled by slowing US economic growth, trade policy uncertainties, and limited fiscal support. Moreover, easing global concerns about fiscal stability will likely decrease the dollar’s appeal as a safe-haven currency.