Morgan Stanley: U.S. Dollar May Weaken This Month if Fed Avoids Rate Hikes

According to Morgan Stanley strategists cited by Jin10, the U.S. dollar may weaken in coming months if the Federal Reserve avoids raising interest rates and market risk appetite improves. The strategists noted that positive risk sentiment works against the dollar, though stronger U.S. economic performance relative to other countries could provide support. The European Central Bank and Bank of Japan are expected to raise rates this month, which could narrow interest rate differentials and fuel risk appetite, pressuring the dollar.
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