Morgan Stanley Predicts the Future of the US Dollar

Juhi Mirza
us dollar brics currency usd
Source: iStock

The future of the US dollar looks bright, as Morgan Stanley predicted an unscathed rise of the USD soon. The financial giant released a new report on Thursday outlining that the US dollar will remain unfazed by the wrath of the rising multi-polar currency narrative. 

The speculation concerning the US dollar in jeopardy was taking the financial realm by storm. The rising US debt metrics were fueling the speculative spree, floating seeds of skepticism in the air. However, the new report brings relief for USD proponents, with prospects for the currency to gain considerable market momentum. 

Also Read: US Economy Notes Significant Rise in Gold, Silver & Copper Prices

USD To Endure It’s Top Reserve Currency Status

US economy portrayed as king
Image Source: WatcherGuru

In a new report released by Morgan Stanley, the financial behemoth predicted the consistent rise of the USD shortly. The organization shared that the USD will continue to dominate world currencies and will retain its top reserve currency status despite the rising multiple polar angles. 

“We expect the USD to endure its reserve status despite ongoing challenges. Challenges posed by an increasingly multipolar world,” Morgan Stanley said in a note.

The report further emphasized that USD will remain unfazed by the rising geopolitical tensions and currency storm that has been brewing lately. 

The organization elaborated that the USD is bound to go through cyclical dips and falls. However, its status as the reserve currency is likely to stay here for a long time. 

“This supports our current preference for USD and should provide long-term support. Although periods of weakness are to be expected based on cyclical conditions and valuation.” 

Also Read: US Dollar Hammers Chinese Yuan, Indian Rupee & Japanese Yen

The US Dollar’s Dominance Continues

The ongoing currency war is now intensifying, with Russia building more pressure to topple the US dollar. The Russian Prime Minister was recently seen giving interviews urging the Middle East to ditch trading in US dollars. With BRICS in the mix and a new currency narrative gaining momentum, the USD is suffering the aftereffects of it, noting a few dips in the wake. 

The latest prediction made by Morgan Stanley has crushed and squashed the hopes of US dollar antagonists in space. The organization shared that the USD supremacy is here to stay for long despite the growing challenges it is bound to encounter in the space.