[Morgan Stanley Predicts Fed Rate Cuts May Weaken the Dollar] Morgan Stanley strategists stated that the Federal Reserve's rate cuts are expected to exceed those of the European Central Bank, which could lead to a weaker dollar over the next year. Factors such as the weakening of U.S. growth advantages, the lagging effects of tightening policies, declining net immigration inflows, relatively moderate fiscal support, and short-term drag from tariff policies may exacerbate pressure on the dollar. Additionally, uncertainties surrounding U.S. policies, including trade issues and the Federal Reserve's independence, may continue to impact the dollar's performance. Meanwhile, concerns about fiscal sustainability outside the U.S. are expected to ease.