Morgan Stanley: The US dollar is expected to weaken due to interest rate cut expectations

BlockBeats News, October 21, Morgan Stanley expects that as market confidence in continued interest rate cuts by the Federal Reserve strengthens, and as the growth rate of the US economy aligns with other economies, the US dollar will weaken. The decline in safe-haven demand and investor hedging activities may further add pressure.

The bank forecasts that by mid-2026, the US Dollar Index (DXY) will fall to 91.00. Currently, the index is up 0.3%, at 98.893.