‘We were wrong.’ Why Morgan Stanley changed its tune on the U.S. dollar — and what it expects now.
Why now
Thesis: Dollar-bearish consensus is cracking as yields rise
Catalyst to watch: Fed hike signals and further yield gains
Main risk: Dollar call reverses again if yields fall
Why it matters
A major bank abandoning its dollar-bearish call signals consensus shifting toward dollar strength, which tightens global financial conditions and pressures risk assets and emerging markets.
Details
Rising bond yields and expected Fed rate hikes have wrecked the bank’s forecast for the buck
Related assets & topics
DollarFederal ReserveTreasury BondsInterest RatesSources
- marketwatch · 2026-09-25 10:46 UTC