Currencies
Morgan Stanley’s Dim US Dollar Outlook Gets Darker as Economic Risks Mount
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The dollar is already having its worst start to a year since the global financial crisis triggered a US recession, and Morgan Stanley & Co. sees more trouble ahead for the currency as fears about the health of the economy grow.
The risk of a federal government shutdown, slowing US growth, and rising asset values abroad are all set to drag the dollar lower in the lead up to President Donald Trump’s April 2 tariff deadline, the bank’s macro strategists warned clients Thursday. A Bloomberg gauge of the dollar’s health has slumped more than 3% so far in 2025, the measure’s worst year-to-date performance since 2008.