Morgan Stanley: The US dollar may depreciate by another 6% this year.

Jitania Kandhari, Chief Investment Officer of Morgan Stanley Investment Management, said that the US dollar's recovery at the beginning of this week was a "counter-trend rebound", but its fundamentals still point to a decline. "This is a counter-trend rebound, but the long-term fundamentals still indicate that the US dollar will continue to decline, possibly depreciating by another 6% this year." US investors need time to diversify away from domestic assets because "US investors have a strong preference for domestic assets", but the clients she has been in touch with are actively inquiring about opportunities in other parts of the world. She is currently bullish on the Euro, Yen, and emerging market currencies.