Straight: Morgan Stanley believes that the benefits of the US dollar have ended and the time has come to sell the currency.
Hans Redeker, head of the exchange strategy in the US bank, said in a note Friday that they believe the US currency. UU. It reached the highest level, citing the agency "Bloomberg".
The bank expects the dollar to fall as capital prices fall and sovereign debt yields fall between inflationary pressures and a drop in oil prices.
Morgan Stanley believes that the recent cash flows in US assets. UU. They were short-lived and prone to rapid reversals, which could make them another probable cause for the US currency to fall. UU.
"Instead of strong domestic FDI or longer flows in the long run, we see evidence that the flows to the U.S. were in money market funds," he said.
Since April, the benchmark in US dollars increased almost 8%, as the currency benefited from trade tensions with China.
The currency was also supported by the monetary adjustment of the Federal Reserve, which implemented three increases in interest rates this year.
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