Morgan Stanley, an American multinational investment banking firm, predicts a decline in the US dollar.
The greenback is poised to weaken throughout 2019. Moreover, the main reasons for its decrease are the factors that contributed to its growth last year. Experts at Morgan Stanley believe that the US dollar would fall due to the cyclical slowdown registered in the rest of the world, the growing risk of protectionism and fiscal stimulus package and tight monetary policy in the United States. In 2018, all this stimulated an increase in the value of the American currency, but now it would have the opposite effect. Besides, trade relations between the US and China improved, and there is no tax concessions as well. Morgan Stanley is sure that the year of 2019 seems to be the opposite of 2018, and the markets are not ready for such a scenario. The United States seems vulnerable due to their huge external debt.
