Morgan Stanley has made a bold prediction that, if true, could help the bullish dollar exchange traded fund (ETF).
The strategist said that we’re in the waning period of the dollar’s decline against most of the major currencies around the world, CNBC reports. But temper that excitement, because the financial sector is still taking a beating, and the Federal Reserve could be forced to make more interest rate cuts.
Morgan Stanley also believes that there might be some gains in the offing for Asian currencies against the dollar, as well.
Another investment bank begs to differ, though: Switzerland-based BIS says the dollar could plunge, and a sudden "rush for the exits" can’t be ruled out, reports Kim-Mai Cutler for Bloomberg. BIS agrees that the Japanese yen may strengthen this year, and is forecast to rise to 100 per dollar and 148 per euro.