1333 GMT - Sterling could underperform as the October 28 U.K. budget approaches, Morgan Stanley strategists say in a note. There remains ample capacity for investors to add sterling-negative risk premium ahead of the budget, they say. High U.K. interest rates make it difficult to express sterling-negative views against many currencies but investors could bet on sterling falling against the dollar "given an increasingly-consensus market view for a higher dollar and the capacity for sterling to cheapen further as more risk premium is added." Sterling falls 0.2% to $1.3212.