Bet Dollar to Fall Against Canadian Dollar, Morgan Stanley Says

Investors should bet the dollar will drop against the Canadian dollar amid an improvement in the global economy, according to Morgan Stanley.

The “Canadian dollar should be an outperformer, given an improving global outlook as it is closely tied to the global growth cycle and commodities demand,” analysts including Yilin Nie in New York and Emma Lawson in London wrote in a report yesterday. “Its strong fiscal position and current-account surplus are also attractive attributes compared to the high amount of leverage in the U.S.”

The dollar rose 0.2 percent to C$1.1717 as of 7:01 a.m. in London