Morgan Stanley: The US Dollar Will Continue to Weaken Over the Next 12 Months

Morgan Stanley Research strategists Vishwanath Tirupattur and Serena Tang stated in a report that the continued weakness of the dollar over the next 12 months is a key theme for Morgan Stanley Research. They said, "We expect the dollar to continue to weaken as U.S. interest rates and economic growth converge with peers." The increase in foreign exchange hedging flows has led to a further rise in risk premiums, which will add to the selling pressure on the dollar. Other safe-haven currencies such as the yen, Swiss franc, and euro are expected to benefit from this.