The period of US dollar strengthening against other major currencies is coming to an end, according to Morgan Stanley analysts. This was reported by MarketWatch. For investors in the foreign exchange market, this signals a shift in the major bank's assessment of the American currency's prospects.

What the report says

In an analytical note titled "Time to Sell," Morgan Stanley specialists note that positive factors are already reflected in the dollar's exchange rate. Additionally, reforms by the incoming Donald Trump administration may not be as swift and large-scale as investors expect.

According to the bank's analysts, the US currency's growth potential is limited.

Which currencies were named attractive

Analysts recommend looking at undervalued currencies. Among them are the British pound sterling and Australian dollar.

  • The pound sterling, according to Morgan Stanley's forecast, will strengthen to $1.32 per pound;
  • The Australian dollar will rise to $0.675 per Australian dollar.

Context

Previously, Donald Trump threatened BRICS countries with protective tariffs for abandoning the dollar.