Inflationary pressures build in G4 economies – Morgan Stanley

The dollar’s current strength is unlikely to be sustainable and any near-term upside is limited, analysts say

Greenback growth? US fiscal stimulus only provides short-term boost to economy, Khoo and Redeker say

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Markets have yet to price in rising inflationary pressures driven by a revival of wage growth in G4 economies, say Morgan Stanley analysts, who add that an acceleration of price growth could have implications for bond yields, equities and, in turn, foreign exchange.

Morgan Stanley’s Hans Redeker, global head of FX strategy, and Gek Teng Khoo, an analyst, say inflation could soon join the list of factors driving

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