Stronger dollar makes financial crisis risk 'untenable' – Morgan Stanley

New York (Reuters) ) – The dollar’s recent rally is creating an “unsustainable situation” for riskier assets that could end in a financial or economic crisis, The Strategist100 Morgan Stanley (NYSE: 2023 Multiple Sclerosis ) Monday in a note. This400 US dollar index GBP/USD fell to a record low on Monday, hitting a 20-year high. Wild swings in currencies are another pressure on the global economy As the Federal Reserve’s aggressive rate hikes over the summer begin to weigh on spending, businesses are expected to Earnings will fall.

“The ultimate low for stocks, and high-yield ds, may depend on earnings and the growth trajectory of the economy, not inflation or Fed,” wrote analysts including Morgan Stanley’s Michael Wilson.

Dollar rebounds The resulting pressure will help push 3000 Standard & Poor’s to new bear market lows between and200 in advance11, the company said. S&P fell 1% on Monday, near its lows for the year. 99