Morgan Stanley: Rising likelihood of Trump victory expected to boost dollar

Analysts at Morgan Stanley said an increase in the likelihood of a Republican winning the election later this year is poised to boost the dollar, even as the US Republican Party looks to curb the dollar's strength. "While former President Donald Trump has spoken out against a strong dollar, we believe his policies will lead to a stronger dollar," strategists such as Andrew Watrus and Zoe Strauss wrote in a research note on 6 August. They noted that the key dollar index spiked in November and December 2016 after Trump's last election victory. They added that "an expansionary fiscal policy agenda could boost expectations for U.S. economic growth and encourage capital inflows into the U.S. if the Republicans win big."