Archive · 2 Jun 2025
Morgan Stanley Predicts US Dollar Decline Due to Economic Factors
Imagine the US Dollar is like a toy that's losing value.
Morgan Stanley, a big financial company, thinks this toy will become less valuable in the next year.
They believe this is because the people in charge of interest rates might lower them and because the economy might slow down.
Other experts, like those at JPMorgan, also think the dollar's value will go down.
If the dollar gets weaker, other currencies like the Euro and Yen could become stronger.
The toy might be worth less if fewer people want to buy it or if the economy isn't doing so well.
The US Dollar has already fallen in value recently because of trade disagreements.
Morgan Stanley predicts a 9% fall in the US Dollar by next year.
The predicted decline is due to interest rate cuts and slowing economic growth.
The US Dollar Index has dropped nearly 10% since February.
JPMorgan Chase & Co. strategists also remain bearish on the US currency.
The euro, yen, and Swiss franc are expected to gain from the dollar's weakness.
- Who
- Morgan Stanley strategists, including Matthew Hornbach, predict a decline in the US Dollar.
- What
- Morgan Stanley predicts the US Dollar will fall.
- When
- Morgan Stanley predicts the US Dollar will fall around 9% by around this time next year.
- Where
- N/A
- Why
- Morgan Stanley predicts the US Dollar will decline due to interest rate cuts and slowing growth.
Dollar Bulls
Dollar Bears
US Dollar Outlook
Dollar Bulls
JPMorgan Chase & Co. strategists remain bearish on the US currency.
Dollar Bears
Morgan Stanley and others predict a decline in the US Dollar.
- Predicted Dollar Fall
- 9%
- Note Date
- May 31
- Expected Fed Rate Cuts
- 175 basis points
- 10-year Treasury Yields (End of Year Prediction)
- 4%