Morgan Stanley Predicts US Dollar Drop to Pandemic Lows
Morgan Stanley has issued a stark warning about the US dollar, predicting a significant drop that could push the currency to levels not seen since the pandemic. The investment bank’s strategists have spearheaded Analysis forecasting a 9% decline in the US Dollar Index over the next 12 months, which would bring it down to around 91. Anticipated Federal Reserve rate cuts of 175 basis points are accelerating this potential dollar crash, and it’s already creating substantial market volatility across various major global financial markets. Also Read: De-Dollarization Changes Trade Rules: 40+ Countries Ditch US Dollar Dollar Crash Driven by Aggressive Fed Policy Source: FT montage / Bloomberg Fed Rate Cuts Trigger Currency Decline Right now, the US Dollar Index has already taken quite a hit, and it’s fallen more than 10% from its mid-January highs of nearly 110. Those peaks came right around President Donald Trump’s inauguration, and since then, Morgan Stanley believ...