US dollar could drop by another 10% in 12 months – Morgan Stanley

The US dollar could decline by 10% over the next 12 months, Morgan Stanely's Mike Wilson told Bloomberg while calling a weak greenback the part of the investment bank's reflation story.

The thesis is that the dollar should be weaker as the US is likely to be most aggressive with structural deficits going forward. Analysts have long cited the US' ballooning twin deficits (current account and fiscal deficit) as one of the key dollar-bearish factors. 

Wilson said that a weak dollar would be favorable for global growth. The dollar index, which tracks the greenback's value against majors, has declined by over 5.7% this year. At the time of writing, the DXY is seen at 90.97, the lowest level in more than two years.