Morgan Stanley Strategists: Dollar May Rise Short-Term Due to Energy Price Shock from Iran Conflict

Morgan Stanley strategists have indicated that the U.S. dollar could experience a short-term increase due to the energy price shock caused by the ongoing conflict involving Iran. According to Jin10, the strategists noted that while the market is currently pricing in the inflationary impact of rising energy prices, attention may soon shift to the negative effects on economic growth. As defense spending increases, the dollar might weaken. They advise investors to sell during the dollar's rebound rather than buying during its pullback.