Morgan Stanley DOWNGRADES U.S. Dollar Rating
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January 6, 2024 12:47 pm
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Financial giant Morgan Stanley has downgraded its outlook on the U.S. dollar.
This downgraded rating is the result of the Federal Reserve’s push toward decreasing interest rates. At roughly the same time rates are decreasing, the international effort to thwart the U.S. dollar continues to grow.
Iran became one of the most recent countries to join the growing BRICS alliance, as the world becomes more fragmented.
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Moreover, the U.S. national debt has crossed the $34 trillion threshold. Interest payments to service the debt now stand as the single highest line item in the federal budget.
Bloomberg Markets reports: “Morgan Stanley, one of the few remaining dollar bulls, downgrade its outlook for the US currency citing declining Treasury yields following the Fed’s dovish pivot.”
Morgan Stanley, one of the few remaining dollar bulls, downgrade its outlook for the US currency citing declining Treasury yields following the Fed's dovish pivot https://t.co/tWxOtS16uF
— Bloomberg Markets (@markets) January 4, 2024
🚨 the Dollar 💵 printing machine come with a heavy toll: Morgan Stanley shifts U.S. dollar outlook from ‘Bullish’ to ‘Neutral’. Federal Reserve’s interest rate cuts cited as a key reason, impacting U.S. Treasury yields. #USD #Finance pic.twitter.com/rgLJWyGmUp
— 2CentsPro (@2Centspro) January 5, 2024
According to Cryptopolitan:
The downgrade arrives amid a backdrop of a steadily declining US Dollar index, currently hovering around 102 points. This dip is more than a blip on the radar; it’s a beacon, signaling a potential shift in the global currency power balance.
Imagine standing on a financial beach and watching the tide go out – that’s the USD index in its current state.
〽️ MORGAN STANLEY TURNS NEUTRAL ON DOLLAR, HAD BEEN BULLISH (Reuters)
Morgan Stanley has moved to neutral on the dollar, having earlier been bullish, it said in a Thursday note, citing a deceleration in the U.S. economy and U.S rates falling further than peers.
They have closed… pic.twitter.com/DTyaOXdePD
— PiQ (@PiQSuite) January 4, 2024
Morgan Stanley, one of the few remaining dollar bulls, downgraded its outlook for the US currency citing declining Treasury yields following the Federal Reserve’s dovish pivot, according to Bloomberg pic.twitter.com/lS82huZqf9
— Cheddar Flow (@CheddarFlow) January 4, 2024
Watcher Guru speculated:
The U.S. dollar index might dip to $100, and if it slips to double digits, local currencies could begin to strengthen. The development coincides with the BRICS agenda of de-dollarization where they plan to get rid of the U.S. dollar for trade.
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