Morgan Stanley Predicts US Dollar Weakness in 12-Month Outlook – Coincu

Morgan Stanley strategists Vishwanath Tirupattur and Serena Tang predict the US dollar will weaken over the next 12 months.

This forecast indicates potential shifts in currency valuation and market dynamics globally.

Morgan Stanley Forecasts 9% Dollar Depreciation

Morgan Stanley strategists forecast a continued decline in the US dollar over the next 12 months. Vishwanath Tirupattur and Serena Tang attribute this to converging US rates and economic growth with other developed nations.

Expectations of a 9% depreciation impact global economies. Safe-haven currencies, such as the Japanese Yen, Swiss Franc, and Euro, are likely to benefit amid this depreciation.

Morgan Stanley’s outlook has sparked discussions in financial circles. Strategists note increased FX hedge fund flows and expect selling pressure on the US dollar to continue. Market responses include adjustments in investment strategies and increased interest in diversifying currency reserves. Read more on Morgan Stanley’s midyear investment outlook.

Historical Patterns and Bitcoin’s Current Valuation

Did you know? Morgan Stanley’s forecast reflects historical patterns where slow economic growth periods often lead to dollar depreciation, potentially shifting global investment strategies.

As of June 2, 2025, Bitcoin (BTC) is valued at $104,800.41, with a market cap of $2.08 trillion, according to CoinMarketCap. Bitcoin’s market dominance is 63.30%, with fluctuations noted over the past 90 days.

The Coincu research team highlights that ongoing technological improvements, alongside regulatory adjustments, could reshape economic landscapes. The impact of AI on global supply chains may drive further shifts in asset allocations. “No two cycles are the same, but equities and credit can do well in a challenging macro environment,” stated Serena Tang, a strategist at Morgan Stanley.