Morgan Stanley: The Dollar May Depreciate Another 6% This Year

According to a report by Jinse Finance, Jitania Kandhari, Chief Investment Officer at Morgan Stanley Investment Management, stated that the dollar's recovery earlier this week is a "counter-trend rebound," while its fundamentals still point to a decline. "This is a counter-trend rebound, but the long-term fundamentals still indicate that the dollar will fall further, possibly depreciating another 6% this year." U.S. investors need time to diversify away from domestic assets because "U.S. investors have a strong home bias," but the clients she interacts with are actively inquiring about other regions of the world to seek opportunities. She is currently optimistic about the euro, yen, and emerging market currencies.