Dollar set for corrective rebound, says Morgan Stanley

Seasonal factors likely to push greenback higher as end of Japanese fiscal year nears

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Weighing in: Japanese institutional investors may expand their dollar asset holdings without hedging FX exposures

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The dollar may gain a temporary break from the longer-term bearish trend in place for the currency as seasonal factors are set to support a corrective rebound, Morgan Stanley FX strategists say.

The approaching end of the Japanese fiscal year, on March 31, could prompt large institutional investors to increase their overseas positions and lend support to the dollar, as most of these flows tend to remain unhedged, says Hans Redeker, chief FX strategist at Morgan S

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