Morgan Stanley: The dollar could lose another 6% this year.

Jitania Kandhari, chief investment officer at Morgan Stanley Investment Management, said the dollar's recovery at the start of the week was a "contrarian rally" and that its fundamentals were still pointing to a decline. "It's a contrarian rally, but the long-term fundamentals still point to further dollar declines, possibly another 6 per cent this year." It will take time for US investors to diversify away from domestic assets because "US investors have a significant home bias", but the clients she works with are actively asking about the rest of the world for opportunities. She is bullish on the euro, yen and emerging market currencies. (Jin Ten)