Nearly Game Over for Dollar Decline: Morgan Stanley

The dollar’s recent declines against the other major currencies are set to reach the final whistle and greenback sellers will have to retreat to the sidelines, David Darst, chief investment strategist of Morgan Stanley Global Wealth Management Group told CNBC Tuesday. “In a soccer match of 90 minutes, we think we are in the 80th minute of decline of the dollar against most of the major currencies,” Darst said on “Worldwide Exchange.” But another sharp drop in financials would lead to further selling for the dollar if the Federal Reserve was forced into more interest rates cuts, Darst said. In addition, Morgan Stanley believes there could be gains in store for some of the Asian currencies versus the dollar, he said. Despite the bullish view on the dollar, Darst told CNBC that the current bear market is far from over and is now entering a painful third stage of “long grinding erosion, which takes several months.”

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