US dollar in danger of weakening for six years

At 9 am(0100gmt), the local unit was quoted at 4.2200/2230 versus the greenback from Wednesday's 4.2370/2400. - Filepic

SINGAPORE: The dollar is threatened by six years of weakness as stronger global growth will outweigh any boosts from interest-rate increases by the Federal Reserve, according to Morgan Stanley.

Investors should short the greenback against emerging-market currencies and the euro as growth gathers momentum, said Hans Redeker, the London-based chief global currency strategist at Morgan Stanley. The dollar’s rally against the yen will halt at 117 in the first quarter, before it drops below 108 by the end of next year, he said.