Morgan Stanley Analyst sees more bad than good for US dollar

Morgan Stanley analyst Bryon Wien in his annual list of “surprises” projects little change in the Standard & Poors 500 Index, Crude Oil to dip to $US30 a barrel before rebounding to $US60 a barrel on shipment problems, the USD to fall to $1.50 against the Euro and 85 against the Yen, China’s economy to grow at 9 per cent and the Federal Reserve to raise it overnight lending rate at every meeting this year. In 2004 Mr Wien missed the mark on a number of issues most notably the Federal Reserve keeping the overnight lending rate at 1 per cent, President George Bush reducing troop numbers in Iraq and that the S&P 500 would finish the year up 18 per cent.