<ul><li>Morgan Stanley predicts a 9% fall in the US Dollar Index over the next 12 months, citing factors such as interest rate cuts and the strength of other currencies.</li><li>The bank expects the dollar to reach a value of 91 on the index, last seen during the pandemic, with the weakness most pronounced against safe-haven currencies like the euro, yen, and Swiss franc.</li><li>Strategists at Morgan Stanley anticipate the euro to rise to $1.25 against the dollar and the pound to $1.45 by mid-2026, while forecasting a 10% decline in the dollar index since mid-January.</li><li>The bank also expects US GDP growth to be 1% in both 2022 and 2026, and the OECD has revised its forecast for US economic expansion down to 1.6% in 2025 from a previous estimate of 2.8%.</li></ul>

Morgan Stanley thinks the dollar has further to fall

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