Wall St dollar bulls throwing in the towel

New York

SIX months after the dollar's ascent faded, Wall Street is giving in. For a second straight quarter, the greenback is set to trail strategists' projections.

Morgan Stanley, Bank of America Corp and Citigroup Inc are among banks that have lowered their dollar forecasts against the euro over the past two weeks. The median estimate for Intercontinental Exchange Inc's US Dollar Index, which tracks the currency against six major peers, has fallen to the lowest level since March.

The Federal Reserve's decision last week to delay any interest-rate increase undermined a bullish-dollar scenario. That came after waves of global turbulence in financial markets following China's surprise currency devaluation last month, which dimmed the world's economic growth outlook and put an abrupt end to the dollar's nine…