Morgan Stanley: A weaker dollar is "an underestimated strong tailwind" for U.S. corporate profits.

Jin10 data reported on July 12 that the uncertainty surrounding Trump's trade policies and his efforts to push the Fed to cut interest rates have weakened the dollar. This is a welcome development for U.S. exporters. Morgan Stanley strategist David Adams stated that the dollar's weakness is "an underestimated strong tailwind" for U.S. corporate profits, especially for large-cap companies with a high percentage of overseas earnings compared to small businesses. BlackRock's data shows that the dollar has fallen 10% this year, marking the worst performance in the first half since 1973, and the company believes there is more downside potential for the dollar. Companies including Meta and Microsoft indicated last quarter that they expect forex to boost revenues by hundreds of millions.