BRICS: Morgan Stanley Bets the US Dollar To Decline
The DXY index, which tracks the performance of the US dollar has been failing to climb above the 100 range for two months. The greenback is failing to hold on to its resistance level and is slipping back to the 98-99 range after it touches the 100 mark. On the other hand, local currencies are rising in the charts and delivering better performance than the USD. The BRICS currencies are also surging in value, and taking the recent developments into consideration, Morgan Stanley has painted a bearish picture for the US dollar. Source: MarketWatch As BRICS looks to uproot the US dollar, leading global investment bank Morgan Stanley has predicted that the US dollar could decline by another 9% in the indices. The forecast estimates that the greenback’s DXY index could fall to the COVID-19 level low. The global bank wrote that the greenback could fall to the 91 level next losing considerable value. That’s a five-year low and is a steep decline despite the market recovering from the...