Morgan Stanley: Expects the dollar to weaken due to interest rate cut expectations.

On October 21, Morgan Stanley expects that as market confidence in the Fed's continued interest rate cuts grows, and the U.S. economic growth aligns with other economies, the U.S. dollar will weaken. Decreased safe-haven demand and investor hedging behavior may further exert pressure. The bank predicts that by mid-2026, the dollar index (DXY) will fall to 91.00. Currently, the index is up 0.3%, reported at 98.893.

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