Sep 25, 2026, 10:46 AMCurrencies and Central Banks
Morgan Stanley Reverses U.S. Dollar View as Bond Yields Rise
Morgan Stanley says rising bond yields and expected Fed rate hikes invalidated its U.S. dollar forecast, while the limited feed omits its latest target.
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Summary
Morgan Stanley acknowledged that its U.S. dollar forecast was wrong after rising bond yields and expected Federal Reserve rate increases overturned the assumptions behind its currency view, according to a MarketWatch report published September 25, 2026.
Only a short feed summary was available. It did not disclose Morgan Stanley’s previous forecast, revised outlook, target, timeframe, expected number of Fed hikes, or the bond yields driving the change.
Positives
- Rising bond yields prompted Morgan Stanley to reassess its U.S. dollar forecast as market conditions changed.
- Expected Federal Reserve rate hikes also contributed to the bank’s revised currency view.
- Morgan Stanley publicly acknowledged that its earlier dollar forecast was wrong.
Risks & concerns
- Morgan Stanley’s previous U.S. dollar forecast failed as bond yields and rate expectations shifted.
- The limited feed did not provide Morgan Stanley’s revised dollar target, direction, or timeframe.
- No bond yield levels, Fed rate projections, or expected number of hikes were disclosed.
Primary sourceMarketWatch.com - Top Storieshttps://www.marketwatch.com/story/we-were-wrong-why-morgan-stanley-changed-its-tune-on-the-u-s-dollar-and-what-it-expects-now-7826fb96?mod=mw_rss_topstories
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