Morgan Stanley Forecasts US Dollar Weakness Amid De-Dollarization Trends
Morgan Stanley warns of a significant decline in the US dollar, projecting it to weaken to 91.00 on the Dollar Index by mid-2026, down from current levels of 98.893. The bank attributes this to anticipated Federal Reserve interest rate cuts, alignment of US economic growth with global peers, and reduced safe-haven demand.
The analysis highlights accelerating de-dollarization risks as central banks worldwide diversify reserves. Monetary policy shifts and investor hedging activities are expected to amplify downward pressure on the greenback, marking one of Wall Street's most bearish dollar forecasts.