Published by Mark Smith-HalvorsenMorgan Stanley sees improved prospects for the dollar through to the end of 2010 amid expectations of further weakness in the euro.The single currency hit a four-year low of $1.2144 earlier this month and in its latest forecast, the investment group predicted the currency will slump to $1.16 by the end of the year.In an investor's report seen by Bloomberg, Stephen Hull, a foreign exchange analyst at Morgan Stanley, commented: "The initial fiscal problem in the periphery (Greece) has now become a fiscal problem for core Europe. More importantly for the euro, it has also undermined the credibility of the European Central Bank."Risk management strategists at Morgan Stanley also anticipates further weakness in sterling, with the pound expected to drop to $1.29 by the end of the year, from $1.4582 today (May 28th).The euro looks set for a fifth weekly decline this morning, with foreign exchange brokers concerned that new financial regulations across the eurozone will stifle growth in the region.For more information on foreign exchange treasury services and risk management, visit our Corporate FX site.