Morgan Stanley Abandons Call for Weaker U.S. Dollar
- Firm exits short positions on greenback against euro, loonie
- Wells Fargo also sees a short-term reversal in weaker dollar
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Morgan Stanley strategists have dropped their expectations of near-term weakening in the dollar amid a regime shift in U.S. rates propelled partly by prospects for meaningful fiscal expansion.
“It’s no longer attractive to be positioned for a weaker dollar from here given the uncertainties around the fiscal policy outlook, the monetary policy outlook, and the growth and inflation outlook,” Matthew Hornbach, global head of macro strategy, said in a phone call on Monday.