UNITED STATES
	SECURITIES AND EXCHANGE COMMISSION
	Washington, D.C. 20549

	FORM 10-Q


[X]	Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the quarterly period ended March 31, 2006 or

[ ]	Transition report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from               to__________________

Commission File Number 0-31563

	MORGAN STANLEY SPECTRUM CURRENCY L.P.

	(Exact name of registrant as specified in its charter)


		Delaware						     13-4084211
(State or other jurisdiction of		   		  (I.R.S. Employer
incorporation or organization)			       Identification No.)

Demeter Management Corporation
330 Madison Avenue, 8th Floor
New York, NY		    					 	   10017
(Address of principal executive offices)	  	      (Zip Code)

Registrant?s telephone number, including area code  (212) 905-2700






(Former name, former address, and former fiscal year, if changed since last
report)

Indicate by check-mark whether the
registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the
 Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

Yes    X       	No___________


Indicate by check-mark whether the registrant is a large accelerated filer, an
accelerated filer, or a non-accelerated filer.  See definition of ?accelerated
filer and large accelerated filer? in Rule 12b-2 of the Exchange Act.  (Check
one):

Large accelerated filer___Accelerated filer___Non-accelerated filer X

Indicate by check-mark whether the registrant is a shell company (as defined
in Rule 12b-2 of the Exchange Act).  Yes___  No X




	<page> <table> MORGAN STANLEY SPECTRUM CURRENCY L.P.

	INDEX TO QUARTERLY REPORT ON FORM 10-Q

	March 31, 2006

<caption>


PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

				<c>
		Statements of Financial Condition as of March 31, 2006
		(Unaudited) and December 31, 2005	2

		Statements of Operations for the Quarters
		Ended March 31, 2006 and 2005 (Unaudited)	3

		Statements of Changes in Partners? Capital for the
		Quarters Ended March 31, 2006 and 2005 (Unaudited)	4

		Statements of Cash Flows for the Quarters
		Ended March 31, 2006 and 2005 (Unaudited)	5

		Notes to Financial Statements (Unaudited)	6-11

Item 2.	Management?s Discussion and Analysis of
			Financial Condition and Results of Operations	12-21

Item 3.	Quantitative and Qualitative Disclosures about
			Market Risk	21-31

Item 4.	Controls and Procedures	31


PART II. OTHER INFORMATION

Item 1A.Risk Factors 	32-33

Item 2.	Unregistered Sales of Equity Securities and Use of
			Proceeds.	.33-34

Item 5.	Other Information	34

Item 6.	Exhibits 	34
</table>


<page> <table> PART I.  FINANCIAL INFORMATION

Item 1.  Financial Statements

	MORGAN STANLEY SPECTRUM CURRENCY L.P.
	STATEMENTS OF FINANCIAL CONDITION
<caption>
	March 31,	December 31,
	       2006      	              2005
	 $	$
	(Unaudited)
ASSETS

	<c>	<c>
Equity in futures interests trading accounts:
	Unrestricted cash	181,803,888	207,952,625
	Restricted cash                                                                               6,746,798		         ?

	     Total cash	188,550,686	207,952,625

	Net unrealized gain (loss) on open contracts (MS & Co.)	   (6,746,798)	     6,202,194

		Total Trading Equity	181,803,888	214,154,819

Subscriptions receivable	1,981,090	1,355,204
Interest receivable (Morgan Stanley DW)	        574,893   	         559,983

	     Total Assets	  184,359,871        	     216,070,006

LIABILITIES AND PARTNERS? CAPITAL

Liabilities

Redemptions payable	5,205,326	6,346,278
Accrued brokerage fees (Morgan Stanley DW)	731,647	862,131
Accrued management fees	       318,107	       374,840

	     Total Liabilities	    6,255,080	    7,583,249

Partners? Capital

Limited Partners (16,591,589.246 and
   17,508,991.514 Units, respectively)	176,163,186	206,199,270
General Partner (182,866.343 and
    194,237.343 Units, respectively)	     1,941,605	    2,287,487

	     Total Partners? Capital	  178,104,791	 208,486,757

	     Total Liabilities and Partners? Capital	   184,359,871  	   216,070,006


NET ASSET VALUE PER UNIT	              10.62	           11.78
<fn>
	The accompanying notes are an integral part
	of these financial statements.
</table>
<page> <table> MORGAN STANLEY SPECTRUM CURRENCY L.P.
	STATEMENTS OF OPERATIONS
(Unaudited)

<caption>

  	   	    For the Quarters Ended March 31,


                                                                         		        2006    	     2005
                                                                               	                    $		       $

		<c>		<c>
INVESTMENT INCOME
	Interest income (Morgan Stanley DW)		    1,617,723			    1,041,888

EXPENSES
	Brokerage fees (Morgan Stanley DW)		2,308,774	2,916,710
	Management fees	      	     1,003,815	  1,268,134

		Total Expenses		     3,312,589	   4,184,844

NET INVESTMENT LOSS	    (1,694,866)	   (3,142,956)

TRADING RESULTS
Trading loss:
	Realized			 (5,443,038)	(21,658,035)
	Net change in unrealized		   (12,948,992)	 (27,892,373)

		Total Trading Results		   (18,392,030)	  (49,550,408)

NET LOSS 	   (20,086,896)	      (52,693,364)


NET LOSS ALLOCATION

	Limited Partners                                                  		            (19,868,142)
(52,130,427)
	General Partner
(218,754)                        (562,937)

NET LOSS PER UNIT

	Limited Partners                                                  		               (1.16)	 (2.75)
	General Partner                                                   		          (1.16)	 (2.75)


<fn>






	The accompanying notes are an integral part
	of these financial statements.
</table>
<page> <table> MORGAN STANLEY SPECTRUM CURRENCY L.P.
	STATEMENTS OF CHANGES IN PARTNERS? CAPITAL
	For the Quarters Ended March 31, 2006 and 2005
	(Unaudited)

<caption>



	Units of
	Partnership	Limited	  General
	   Interest   	Partners	   Partner  	     Total
		$	$	$


	<c>	<c>	<c>	<c>
Partners? Capital,
   December 31, 2004	18,954,389.185	270,231,305	2,869,425	273,100,730

Offering of Units	1,559,498.920	18,915,641	170,000	19,085,641

Net Loss                                                                    ? 	  	(52,130,427)	(562,937)
	(52,693,364)

Redemptions	   (756,872.898)	   (9,181,048)	         ?     	 (9,181,048)

Partners? Capital,
   March 31, 2005	  19,757,015.207	 227,835,471	     2,476,488	 230,311,959





Partners? Capital,
   December 31, 2005	17,703,228.857	206,199,270	2,287,487	208,486,757

Offering of Units	483,816.273	5,362,200	? 	5,362,200

Net Loss                                                                    ? 	  	(19,868,142)	(218,754)
	(20,086,896)

Redemptions	   (1,412,589.541)	   (15,530,142)	    (127,128) 	 (15,657,270)

Partners? Capital,
   March 31, 2006	  16,774,455.589	 176,163,186	     1,941,605	 178,104,791



<fn>





The accompanying notes are an integral part
	of these financial statements.
</table>

<page> <table> 	MORGAN STANLEY SPECTRUM CURRENCY L.P.
	STATEMENTS OF CASH FLOWS
(Unaudited)

<caption>




	    For the Quarters Ended March 31,

	      2006     	      2005
	      $	      $


	<c>	<c>
CASH FLOWS FROM OPERATING ACTIVITIES

Net loss 	(20,086,896)	(52,693,364)
Noncash item included in net loss:
       Net change in unrealized	12,948,992	27,892,373

Increase in operating assets:
       Restricted cash	(6,746,798)	(11,074,740)
       Interest receivable (Morgan Stanley DW)	(14,910)	(87,148)

Decrease in operating liabilities:
       Accrued brokerage fees (Morgan Stanley DW)	(130,484)	(85,066)
       Accrued management fees	          (56,733)	         (36,986)

Net cash used for operating activities	   (14,086,829)	  (36,084,931)


CASH FLOWS FROM FINANCING ACTIVITIES

Cash received from offering of Units	4,736,314	19,066,169
Cash paid for redemptions of Units	     (16,798,222)	   (7,651,682)

Net cash provided by (used for) financing activities	   (12,061,908)	  11,414,487

Net decrease in unrestricted cash	(26,148,737)   	(24,670,444)

Unrestricted cash at beginning of period	   207,952,625	 253,222,567

Unrestricted cash at end of period	   181,803,888	  228,552,123


<fn>




	The accompanying notes are an integral part
	of these financial statements.

</table>


<page> MORGAN STANLEY SPECTRUM CURRENCY L.P.
NOTES TO FINANCIAL STATEMENTS

March 31, 2006

(Unaudited)


The unaudited financial statements contained herein include, in
the opinion of management, all adjustments necessary for a fair
presentation of the results of operations and financial condition
of Morgan Stanley Spectrum Currency L.P. (the ?Partnership?).
The financial statements and condensed notes herein should be
read in conjunction with the Partnership?s December 31, 2005
Annual Report on Form 10-K.  Certain prior year amounts relating
to cash balances were reclassified on the Statements of Financial
Condition and the related Statements of Cash Flows to conform to
2006 presentation.  Such reclassifications have no impact on the
Partnership?s reported net income (loss).

1.  Organization
Morgan Stanley Spectrum Currency L.P. is a Delaware limited
partnership organized in 1999 to engage primarily in the
speculative trading of futures contracts, options on futures
contracts, and forward contracts in global currency markets.  The
Partnership is one of the Morgan Stanley Spectrum Series of
funds, comprised of the Partnership, Morgan Stanley Spectrum
Global Balanced L.P., Morgan Stanley Spectrum Select L.P., Morgan
Stanley Spectrum Strategic L.P., and Morgan Stanley Spectrum
Technical L.P.
<page> MORGAN STANLEY SPECTRUM CURRENCY L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Partnership?s general partner is Demeter Management
Corporation (?Demeter?).  The non-clearing commodity broker is
Morgan Stanley DW Inc. (?Morgan Stanley DW?). The clearing
commodity broker is Morgan Stanley & Co. Incorporated (?MS &
Co.?).  Demeter, Morgan Stanley DW, and MS & Co. are wholly-
owned subsidiaries of Morgan Stanley.  The trading advisors to
the Partnership are John W. Henry & Company, Inc. and Sunrise
Capital Partners, LLC (individually, a ?Trading Advisor?, or
collectively, the ?Trading Advisors?).

2.  Related Party Transactions
The Partnership?s cash is on deposit with Morgan Stanley DW and
MS & Co. in futures, forwards, and options trading accounts to
meet margin requirements as needed.  Monthly, Morgan Stanley DW
pays the Partnership interest income equal to 80% of the month?s
average daily Net Assets at a rate equal to a prevailing rate on
U.S. Treasury bills.  The Partnership pays brokerage fees to
Morgan Stanley DW.

3.  Financial Instruments
The Partnership trades futures contracts, options on futures
contracts, and forward contracts in global currency markets.
Futures and forwards represent contracts for delayed delivery of
an instrument at a specified date and price.  Risk arises from


<page> MORGAN STANLEY SPECTRUM CURRENCY L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
changes in the value of these contracts and the potential
inability of counterparties to perform under the terms of the
contracts.  There are numerous factors which may significantly
influence the market value of these contracts, including interest
rate volatility.

The market value of exchange-traded contracts is based on the
settlement price quoted by the exchange on the day with respect
to which market value is being determined.  If an exchange-traded
contract could not have been liquidated on such day due to the
operation of daily limits or other rules of the exchange, the
settlement price shall be the settlement price on the first
subsequent day on which the contract could be liquidated.  The
market value of off-exchange-traded contracts is based on the
fair market value quoted by the counterparty.

The Partnership?s contracts are accounted for on a trade-date
basis and marked to market on a daily basis. The Partnership
accounts for its derivative investments in accordance with the
provisions of Statement of Financial Accounting Standards No.
133, ?Accounting for Derivative Instruments and Hedging
Activities? (?SFAS No. 133?).  SFAS No. 133 defines a
derivative as a financial instrument or other contract that has
all three of the following characteristics:

<page> MORGAN STANLEY SPECTRUM CURRENCY L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

1)	One or more underlying notional amounts or payment
provisions;
2)	Requires no initial net investment or a smaller initial net
investment than would be required relative to changes in
market factors;
3)	Terms require or permit net settlement.

Generally, derivatives include futures, forward, swaps or options
contracts, and other financial instruments with similar
characteristics such as caps, floors, and collars.

The net unrealized gains (losses) on open contracts, reported as a
component of ?Equity in futures interests trading accounts? on
the Statements of Financial Condition, and their longest contract
maturities were as follows:

                  Net Unrealized Gains/(Losses)
                        on Open Contracts                Longest Maturities

                 Exchange-  Off-Exchange-             Exchange-  Off-Exchange-
Date              Traded      Traded       Total       Traded       Traded
                     $          $            $

Mar. 31, 2006	-	(6,746,798)	(6,746,798)	-	Jun. 2006
Dec. 31, 2005	-	6,202,194	6,202,194	-	Mar. 2006

The Partnership has credit risk associated with counterparty non-
performance.  As of the date of the financial statements, the
<page> MORGAN STANLEY SPECTRUM CURRENCY L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
credit risk associated with the instruments in which the
Partnership trades is limited to the amounts reflected in the
Partnership?s Statements of Financial Condition.

The Partnership also has credit risk because Morgan Stanley DW
and MS & Co. act as the futures commission merchants or the
counterparties, with respect to most of the Partnership?s assets.
Exchange-traded futures, forward, and futures-styled options
contracts are marked to market on a daily basis, with variations
in value settled on a daily basis.  Morgan Stanley DW and MS &
Co., each as a futures commission merchant for the Partnership?s
exchange-traded futures, forward, and futures-styled options
contracts, are required, pursuant to regulations of the Commodity


Futures Trading Commission (?CFTC?), to segregate from their
own assets, and for the sole benefit of their commodity
customers, all funds held by them with respect to exchange-traded
futures, forward, and futures-styled options contracts, including
an amount equal to the net unrealized gains (losses) on all open
futures, forward, and futures-styled options contracts.  With
respect to the Partnership?s off-exchange-traded forward currency
contracts, there are no daily exchange-required settlements of
variation in value, nor is there any requirement that an amount
equal to the net unrealized gains (losses) on open forward
contracts be segregated.  However, the Partnership is required to
<page> MORGAN STANLEY SPECTRUM CURRENCY L.P.
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)

meet margin requirements equal to the net unrealized loss on open
contracts in the Partnership accounts with the counterparty,
which is accomplished by daily maintenance of the cash balance in
a custody account held at Morgan Stanley DW for the benefit of MS
& Co.  With respect to those off-exchange-traded forward currency
contracts, the Partnership is at risk to the ability of MS & Co.,
the sole counterparty on all such contracts, to perform.  The
Partnership has a netting agreement with MS & Co.  This
agreement, which seeks to reduce both the Partnership?s and MS &
Co.?s exposure on off-exchange-traded forward currency contracts,
should materially decrease the Partnership?s credit risk in the
event of MS & Co.?s bankruptcy or insolvency.


<page> Item 2. MANAGEMENT?S DISCUSSION AND ANALYSIS OF FINANCIAL
            CONDITION AND RESULTS OF OPERATIONS


Liquidity.  The Partnership deposits its assets with Morgan Stanley
DW as non-clearing broker, and MS & Co. as clearing broker in
separate futures, forwards, and options trading accounts
established for each Trading Advisor.  Such assets are used as
margin to engage in trading and may be used as margin solely for
the Partnership?s trading. The assets are held in either non-
interest bearing bank accounts or in securities and instruments
permitted by the CFTC for investment of customer segregated or
secured funds.  Since the Partnership?s sole purpose is to trade in
futures, forwards, and options, it is expected that the Partnership
will continue to own such liquid assets for margin purposes.

The Partnership?s investment in futures, forwards, and options may,
from time to time, be illiquid.  Most U.S. futures exchanges limit
fluctuations in prices during a single day by regulations referred
to as ?daily price fluctuations limits? or ?daily limits?.
Trades may not be executed at prices beyond the daily limit.  If
the price for a particular futures or options contract has
increased or decreased by an amount equal to the daily limit,
positions in that futures or options contract can neither be taken
nor liquidated unless traders are willing to effect trades at or
within the limit. Futures prices have occasionally moved the daily
limit for several consecutive days with little or no trading.
<page> These market conditions could prevent the Partnership from
promptly liquidating its futures or options contracts and result in
restrictions on redemptions.

There is no limitation on daily price moves in trading forward
contracts on foreign currencies.  The markets for some world
currencies have low trading volume and are illiquid, which may
prevent the Partnership from trading in potentially profitable
markets or prevent the Partnership from promptly liquidating
unfavorable positions in such markets, subjecting it to
substantial losses.  Either of these market conditions could
result in restrictions on redemptions.  For the periods covered
by this report, illiquidity has not materially affected the
Partnership?s assets.

There are no known material trends, demands, commitments, events,
or uncertainties at the present time that are reasonably likely
to result in the Partnership?s liquidity increasing or decreasing
in any material way.

Capital Resources.  The Partnership does not have, nor expects to
have, any capital assets.  Redemptions, exchanges, and sales of
units of limited partnership interest (?Unit(s)?) in the future
will affect the amount of funds available for investments in
futures, forwards, and options in subsequent periods. It is not
<page> possible to estimate the amount, and therefore the impact,
of future inflows and outflows of Units.

There are no known material trends, favorable or unfavorable,
that would affect, nor any expected material changes to, the
Partnership?s capital resource arrangements at the present time.

Off-Balance Sheet Arrangements and Contractual Obligations.  The
Partnership does not have any off-balance sheet arrangements, nor
does it have contractual obligations or commercial commitments to
make future payments that would affect its liquidity or capital
resources.

Results of Operations
General.  The Partnership?s results depend on the Trading
Advisors and the ability of each Trading Advisor?s trading
program to take advantage of price movements in the futures,
forwards, and options markets.  The following presents a summary
of the Partnership?s operations for the three month periods ended
March 31, 2006 and 2005, and a general discussion of its trading
activities during each period. It is important to note, however,
that the Trading Advisors trade in various markets at different
times and that prior activity in a particular market does not
mean that such market will be actively traded by the Trading
Advisors or will be profitable in the future. Consequently, the
results of operations of the Partnership are difficult to discuss
<page> other than in the context of the Trading Advisors? trading
activities on behalf of the Partnership during the period in
question. Past performance is no guarantee of future results.

The Partnership?s results of operations set forth in the
financial statements on pages 2 through 11 of this report are
prepared in accordance with accounting principles generally
accepted in the United States of America, which require the use
of certain accounting policies that affect the amounts reported
in these financial statements, including the following: The
contracts the Partnership trades are accounted for on a trade-
date basis and marked to market on a daily basis.  The difference
between their cost and market value is recorded on the Statements
of Operations as ?Net change in unrealized trading profit
(loss)? for open (unrealized) contracts, and recorded as
?Realized trading profit (loss)? when open positions are closed
out.  The sum of these amounts constitutes the Partnership?s
trading results. The market value of a futures contract is the
settlement price on the exchange on which that futures contract
is traded on a particular day.  The value of foreign currency
forward contracts is based on the spot rate as of the close of
business. Interest income, as well as management fees, incentive
fees, and brokerage fees expenses of the Partnership are recorded
on an accrual basis.

<page> Demeter believes that, based on the nature of the
operations of the Partnership, no assumptions relating to the
application of critical accounting policies other than those
presently used could reasonably affect reported amounts.

For the Quarter Ended March 31, 2006
The Partnership recorded total trading results including interest
income totaling $(16,774,307) and expenses totaling $3,312,589,
resulting in a net loss of $20,086,896 for the quarter ended March
31, 2006.  The Partnership?s net asset value per Unit decreased
from $11.78 at December 31, 2005 to $10.62 at March 31, 2006.


The most significant trading losses of approximately 4.4%, 2.8%,
1.6%, and 1.3% respectively, were experienced from short
positions in the Japanese yen, Swiss franc, euro, and Norwegian
krone versus the U.S. dollar as the U.S. dollar?s value reversed
lower during January on expectations that a string of increases
in interest rates by the U.S. Federal Reserve could possibly come
to an end. Also pushing the value of the U.S. dollar lower
against its rivals was speculation that China, with a massive
$760 billion of U.S. dollar reserve, might move to diversify some
of its assets into other currencies.  European currency values
also moved higher on expectations that the European Central Bank
might raise interest rates.  Additional losses experienced during
February resulted from short Japanese yen positions against the
<page> U.S. dollar as the value of the yen moved higher against
the U.S. dollar after the release of better-than-expected
Japanese machinery orders data.  The Japanese yen?s value
continued higher against the U.S. dollar towards the end of
February amid intense speculation that the Bank of Japan may move
to tighten monetary policy in Japan.  Further losses during
February were incurred from long positions in the euro, Swiss
franc, and Norwegian krone versus the U.S. dollar as the values
of these European currencies finished lower against the United
States dollar amid significant interest rate differentials
between the United States and the European Union.  During March,
losses were experienced from long positions in the U.S. dollar
relative to the Japanese yen as the value of the yen reversed
higher after comments from U.S. Treasury Undersecretary Adams
warning Japan against preventing the yen from strengthening.
Further losses during March were experienced from short positions
in the euro and the Swiss franc relative to the U.S. dollar as
the value of these European currencies moved higher after the
release of generally positive economic data from the euro-zone
reinforced expectations that European interest rates would
continue to rise.  Additional losses of approximately 0.8% were
recorded, primarily during March, from both long and short
positions in the Polish zloty against the U.S. dollar as the
value of the zloty moved without consistent direction amid
conflicting economic data out of Poland.  Smaller losses of
<page> approximately 0.5% were experienced from long positions in
the British pound against the U.S. dollar during February and
March as the value of the pound reversed lower on speculation of
a reduction of interest rates by the Bank of England and news
that Gross Domestic Product in the United Kingdom for 2005 was
weaker-than-expected.  Losses of approximately 0.4% were
experienced during February and March from positions in the Czech
koruna versus the U.S. dollar as the value of the Czech koruna
experienced short-term volatility.  Finally, losses of
approximately 0.1% were recorded during February from long
positions in the South African rand as the value of this
?Commodity Currency? reversed lower amid a reduction in gold
prices.  Smaller losses were experienced during March from both
long and short positions in the South African rand against the
U.S. dollar.  A portion of the Partnership?s overall losses for
the quarter was offset by gains of approximately 1.8% recorded
primarily during March from short positions in the New Zealand
dollar versus the U.S. dollar as the value of the New Zealand
dollar continued to trend lower on expectations for an economic
slow-down in New Zealand.

For the Quarter Ended March 31, 2005
The Partnership recorded total trading results including interest
income totaling $(48,508,520) and expenses totaling $4,184,844,
resulting in a net loss of $52,693,364 for the quarter ended
<page> March 31, 2005.  The Partnership?s net asset value per
Unit decreased from $14.41 at December 31, 2004 to $11.66 at
March 31, 2005.

The most significant trading losses of approximately 7.1%, 1.8%,
1.1%, and 1.1%, respectively, resulted from positions in the
euro, Swiss franc, Czech koruna, and Norwegian krone versus the
U.S. dollar.  Long positions in a variety of European currencies
versus the U.S. dollar experienced losses during January after
the U.S. dollar?s value reversed sharply higher amid conflicting
economic data, improvements in the U.S. trade deficit numbers
from November, and speculation for higher U.S. interest rates.
Finally, the U.S. dollar?s value also advanced in response to
expectations that the Chinese government would announce
postponement of its re-valuation of the Chinese yuan for the
foreseeable future.  During February, losses were incurred from
short European currency positions versus the U.S. dollar as the
U.S. dollar?s value weakened in response to concern for the
considerable U.S. Current-Account deficit expressed by U.S.
Federal Reserve Chairman Alan Greenspan.  During early March,
short European currency positions continued to experience losses
as their values moved higher amid a sharp rise in German
industrial production.  Further losses were recorded from newly
established long positions versus the U.S. dollar as the value of
the U.S. dollar reversed sharply higher amid an increase in U.S.
interest rates and consumer prices.  Additional Partnership
<page> losses of approximately 4.6%, 0.5%, and 0.2%,
respectively, stemmed from positions in the South African rand,
New Zealand dollar, and Australian dollar (collectively the
?Commodity Currencies?), versus the U.S. dollar as the
Commodity Currencies values traded counter to the U.S. dollar,
due to the aforementioned reasons.  Further losses of
approximately 2.3% were incurred from positions in the Singapore
dollar versus the U.S. dollar, primarily during February and
March.  During February, long positions in the Singapore dollar
against the U.S. dollar incurred losses early in the month as the
U.S. dollar?s value benefited from positive economic sentiment.
Newly established short Singapore dollar positions also incurred
losses later in the month after the U.S. dollar weakened due to a
larger-than-expected drop in January leading economic indicators
and news that South Korea?s Central Bank planned to reduce its
U.S. dollar currency reserves.  During March, long positions in
the Singapore dollar versus the U.S. dollar resulted in losses as
the value of the U.S. dollar reversed sharply higher amid an
increase in U.S. interest rates and U.S. consumer prices.  A
portion of the Partnership?s overall losses for the quarter was
offset by gains of approximately 0.5% achieved during March from
short positions in the Japanese yen versus the U.S. dollar as the
U.S. dollar advanced due to an increase in U.S. interest rates by
the U.S. Federal Reserve.  Smaller Partnership gains of
approximately 0.1% were achieved during February from long
positions in the British pound versus the U.S. dollar as the U.S.
<page> dollar?s value declined amid news of disappointing U.S.
economic data and proposed reductions in foreign central bank
U.S. dollar holdings.

Item 3.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Introduction
The Partnership is a commodity pool engaged primarily in the
speculative trading of futures, forwards, and options.  The
market-sensitive instruments held by the Partnership are acquired
for speculative trading purposes only and, as a result, all or
substantially all of the Partnership?s assets are at risk of
trading loss.  Unlike an operating company, the risk of market-
sensitive instruments is inherent to the primary business
activity of the Partnership.

The futures, forwards, and options traded by the Partnership
involve varying degrees of related market risk.  Market risk is
often dependent upon changes in the level or volatility of
interest rates, exchange rates, and prices of financial
instruments and commodities, factors that result in frequent
changes in the fair value of the Partnership?s open positions,
and consequently in its earnings, whether realized or unrealized,
and cash flow.  Gains and losses on open positions of exchange-
traded futures, forwards, and options are settled daily through
variation margin.  Gains and losses on off-exchange-traded
forward currency contracts are settled upon termination of the
<page> contract, however, the Partnership is required to meet
margin requirements equal to the net unrealized loss on open
contracts in the Partnership accounts with the counterparty,
which is accomplished by daily maintenance of the cash balance in
a custody account held at Morgan Stanley DW for the benefit of MS
& Co.

The Partnership?s total market risk may increase or decrease as
it is influenced by a wide variety of factors, including, but not
limited to, the diversification among the Partnership?s open
positions, the volatility present within the markets, and the
liquidity of the markets.

The face value of the market sector instruments held by the
Partnership is typically many times the applicable margin
requirements.  Margin requirements generally range between 2% and
15% of contract face value.  Additionally, the use of leverage
causes the face value of the market sector instruments held by
the Partnership to typically be many times the total
capitalization of the Partnership.

The Partnership?s past performance is no guarantee of its future
results.  Any attempt to numerically quantify the Partnership?s
market risk is limited by the uncertainty of its speculative
trading.  The Partnership?s speculative trading and use of
leverage may cause future losses and volatility (i.e., ?risk of
<page> ruin?) that far exceed the Partnership?s experience to
date under the ?Partnership?s Value at Risk in Different Market
Sectors? section and significantly exceed the Value at Risk
(?VAR?) tables disclosed.

Limited partners will not be liable for losses exceeding the
current net asset value of their investment.

Quantifying the Partnership?s Trading Value at Risk
The following quantitative disclosures regarding the Partner-
ship?s market risk exposures contain ?forward-looking
statements? within the meaning of the safe harbor from civil
liability provided for such statements by the Private Securities
Litigation Reform Act of 1995 (set forth in Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934).  All quantitative disclosures in this section are
deemed to be forward-looking statements for purposes of the safe
harbor, except for statements of historical fact.

The Partnership accounts for open positions on the basis of mark
to market accounting principles.  Any loss in the market value of
the Partnership?s open positions is directly reflected in the
Partnership?s earnings and cash flow.

The Partnership?s risk exposure in the market sectors traded by
the Trading Advisors is estimated below in terms of VaR.  The
<page> Partnership estimates VaR using a model based upon
historical simulation (with a confidence level of 99%) which
involves constructing a distribution of hypothetical daily
changes in the value of a trading portfolio.  The VaR model takes
into account linear exposures to risk including equity and
commodity prices, interest rates, foreign exchange rates, and
correlation among these variables. The hypothetical changes in
portfolio value are based on daily percentage changes observed in
key market indices or other market factors (?market risk
factors?) to which the portfolio is sensitive. The one-day 99%
confidence level of the Partnership?s VaR corresponds to the
negative change in portfolio value that, based on observed market
risk factors, would have been exceeded once in 100 trading days,
or one day in 100. VaR typically does not represent the worst
case outcome.  Demeter uses approximately four years of daily
market data (1,000 observations) and re-values its portfolio
(using delta-gamma approximations) for each of the historical
market moves that occurred over this time period.  This generates
a probability distribution of daily ?simulated profit and loss?
outcomes.  The VaR is the appropriate percentile of this
distribution.  For example, the 99% one-day VaR would represent
the 10th worst outcome from Demeter?s simulated profit and loss
series.

The Partnership?s VaR computations are based on the risk
representation of the underlying benchmark for each instrument or
<page> contract and do not distinguish between exchange and non-
exchange dealer-based instruments.  They are also not based on
exchange and/or dealer-based maintenance margin requirements.

VaR models, including the Partnership?s, are continually evolving
as trading portfolios become more diverse and modeling techniques
and systems capabilities improve.  Please note that the VaR model
is used to numerically quantify market risk for historic
reporting purposes only and is not utilized by either Demeter or
the Trading Advisors in their daily risk management activities.
Please further note that VaR as described above may not be
comparable to similarly-titled measures used by other entities.

The Partnership?s Value at Risk in Different Market Sectors
The following table indicates the VaR associated with the
Partnership?s open positions as a percentage of total Net Assets
by primary market risk category at March 31, 2006 and 2005.  At
March 31, 2006 and 2005, the Partnership?s total capitalization
was approximately $178 million and $230 million, respectively.

Primary Market		   March 31, 2006	    March 31, 2005
Risk Category		   Value at Risk		Value at Risk
Currency				  (1.40)%			    (2.94)%

The VaR for a market category represents the one-day downside
risk for the aggregate exposures associated with this market
category.  Because the business of the Partnership is the
<page> speculative trading of futures, forwards, and options, the
composition of its trading portfolio can change significantly
over any given time period, or even within a single trading day,
which could positively or negatively materially impact market
risk as measured by VaR.

The table below supplements the quarter-end VaR set forth above
by presenting the Partnership?s high, low, and average VaR, as a
percentage of total Net Assets for the four quarter-end reporting
periods from April 1, 2005 through March 31, 2006.

Primary Market Risk Category        High      Low      Average
Currency   					(3.97)%	 (1.40)%	 (2.61)%

Limitations on Value at Risk as an Assessment of Market Risk
VaR models permit estimation of a portfolio?s aggregate market
risk exposure, incorporating a range of varied market risks;
reflect risk reduction due to portfolio diversification or
hedging activities; and can cover a wide range of portfolio
assets.  However, VaR risk measures should be viewed in light of
the methodology?s limitations, which include, but may not be
limited to the following:
*	past changes in market risk factors will not always result in
accurate predictions of the distributions and correlations of
future market movements;

<page>
*	changes in portfolio value caused by market movements may differ
from those of the VaR model;
*	VaR results reflect past market fluctuations applied to current
trading positions while future risk depends on future positions;
*	VaR using a one-day time horizon does not fully capture the
market risk of positions that cannot be liquidated or hedged
within one day; and
*	the historical market risk factor data used for VaR estimation
may provide only limited insight into losses that could be
incurred under certain unusual market movements.

In addition, the VaR tables above, as well as the past performance
of the Partnership, give no indication of the Partnership?s
potential ?risk of ruin?.

The VaR tables provided present the results of the Partnership?s
VaR for its market risk exposure at March 31, 2005, and for the
four quarter-end reporting periods from April 1, 2005 through
March 31, 2006.  VaR is not necessarily representative of the
Partnership?s historic risk, nor should it be used to predict the
Partnership?s future financial performance or its ability to
manage or monitor risk.  There can be no assurance that the
Partnership?s actual losses on a particular day will not exceed
<page> the VaR amounts indicated above or that such losses will
not occur more than once in 100 trading days.

Non-Trading Risk
The Partnership has non-trading market risk on its foreign cash
balances.  The Partnership did not have any foreign currency
balances at March 31, 2006.

The Partnership also maintains a substantial portion of its
available assets in cash at Morgan Stanley DW; as of March 31,
2006, such amount is equal to approximately 107% of the
Partnership?s net asset value.  A decline in short-term interest
rates would result in a decline in the Partnership?s cash
management income. This cash flow risk is not considered to be
material.

Materiality, as used throughout this section, is based on an
assessment of reasonably possible market movements and any
associated potential losses, taking into account the leverage,
optionality, and multiplier features of the Partnership?s market-
sensitive instruments, in relation to the Partnership?s Net
Assets.

Qualitative Disclosures Regarding Primary Trading Risk Exposures
The following qualitative disclosures regarding the Partnership?s
market risk exposures ? except for (A) those disclosures that
are <page> statements of historical fact and (B) the descriptions
of how the Partnership manages its primary market risk exposures
? constitute forward-looking statements within the meaning of
Section 27A of the Securities Act and Section 21E of the
Securities Exchange Act.  The Partnership?s primary market risk
exposures, as well as the strategies used and to be used by
Demeter and the Trading Advisors for managing such exposures, are
subject to numerous uncertainties, contingencies and risks, any
one of which could cause the actual results of the Partnership?s
risk controls to differ materially from the objectives of such
strategies.  Government interventions, defaults and expropria-
tions, illiquid markets, the emergence of dominant fundamental
factors, political upheavals, changes in historical price
relationships, an influx of new market participants, increased
regulation, and many other factors could result in material
losses, as well as in material changes to the risk exposures and
the risk management strategies of the Partnership.  Investors
must be prepared to lose all or substantially all of their
investment in the Partnership.

The following was the only trading risk exposure of the
Partnership at March 31, 2006.  It may be anticipated, however,
that market exposure will vary materially over time.

Currency.  At March 31, 2006, the Partnership had market exposure
in the currency sector.  Exposure was to exchange rate
<page> fluctuations, primarily fluctuations which disrupt the
historical pricing relationships between different currencies and
currency pairs.  Interest rate changes, as well as political and
general economic conditions influence these fluctuations.  At
March 31, 2006, the Partnership?s exposure was to outright U.S.
dollar positions.  Outright positions consist of the U.S. dollar
vs. other currencies.  These other currencies include major and
minor currencies.  Demeter does not anticipate that the risk
associated with the Partnership?s currency trades will change
significantly in the future.

Qualitative Disclosures Regarding Non-Trading Risk Exposure
At March 31, 2006, there was no non-trading risk exposure because
the Partnership did not have any foreign currency balances.

Qualitative Disclosures Regarding Means of Managing Risk Exposure
The Partnership and the Trading Advisors, separately, attempt to
manage the risk of the Partnership?s open positions in
essentially the same manner in all market categories traded.
Demeter attempts to manage market exposure by diversifying the
Partnership?s assets among different Trading Advisors in a multi-
advisor Partnership, each of whose strategies focus on different
trading approaches, and by monitoring the performance of the
Trading Advisors daily.  In addition, the Trading Advisors
establish diversification guidelines, often set in terms of the
<page> maximum margin to be committed to positions in any one
market sector or market-sensitive instrument.

Demeter monitors and controls the risk of the Partnership?s non-
trading instrument, cash.  Cash is the only Partnership
investment directed by Demeter, rather than the Trading Advisors.

Item 4.	CONTROLS AND PROCEDURES
(a)	As of the end of the period covered by this quarterly
report, the President and Chief Financial Officer of
Demeter, the general partner of the Partnership, have
evaluated the effectiveness of the Partnership?s disclosure
controls and procedures (as defined in Rules 13a?15(e) and
15d?15(e) of the Exchange Act), and have judged such
controls and procedures to be effective.

(b)	There have been no material changes during the period
covered by this quarterly report in the Partnership?s
internal control over financial reporting (as defined in
Rules 13a-15(f) and 15d-15(f) of the Exchange Act) or in
other factors that could significantly affect these controls
subsequent to the date of their evaluation.
<page> PART II.  OTHER INFORMATION
Item 1A. RISK FACTORS
The Partnership?s trading is highly leveraged.  As an example of
the leverage employed by the Partnership, the average of the
underlying value of the Partnership?s month-end positions for the
period March 2005 through February 2006 compared to the average
month-end Net Assets of the Partnership during such period was 4.0
times Net Assets.

The unregulated nature of the forwards markets creates counterparty
risks that does not exist in futures trading on exchanges.  The
average percentage of month-end margin require-ments for the period
March 2005 through February 2006 that relates to forward contracts
as compared to the Partnership?s total average month-end margin
requirements was 100%.

The Partnership incurs substantial charges.  Demeter estimates the
percentage of Partnership Net Assets that must be earned each year
in order for the Partnership to break even without accounting for a
redemption charge to be 3.80%.

The Partnership could lose assets and have its trading disrupted if
a commodity broker, any of the Trading Advisors, or others become
bankrupt or if any of the Partnership?s Trading Advisors commits a
trading error.  The Partnership?s assets could be lost or impounded
and trading suspended if a commodity broker, any of <page> the
Partnership?s Trading Advisors, an exchange or a clearinghouse
becomes insolvent or involved in lengthy bankruptcy proceedings, or
if any of the Partnership?s Trading Advisors commits a trading
error executed on behalf of the Partnership.

Item 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF
	    PROCEEDS
					 SEC
Registration Statement on Form S-1  Units Registered   Effective Date
File Number

Initial Registration            12,000,000.000		 March 6, 2000	333-90485
Additional Registration          1,000,000.000	 	April 30, 2002	333-84654
Additional Registration         14,000,000.000 	   April 28, 2003     333-
104004
Additional Registration         25,000,000.000	    April 28, 2004	333-113398
 Total Units Registered         52,000,000.000

Units sold through 3/31/06	      26,104,180.973
Units unsold through 3/31/06    25,895,819.027


The managing underwriter for the Partnership is Morgan Stanley
DW.

Units are continuously sold at monthly closings at a purchase
price equal to 100% of the net asset value per Unit as of the
close of business on the last day of each month.

The aggregate price of the Units sold through March 31, 2006 was
$342,734,964.

Since no expenses are chargeable against proceeds, 100% of the
proceeds of the offering have been applied to the working capital
of the Partnership for use in accordance with the ?Use of <page>
Proceeds? section of the prospectus included as part of the above
referenced Registration Statements.

Item 5.  OTHER INFORMATION
Management.  In connection with the election of new directors to
the Board of Directors of Demeter, the following information
updates the disclosures in the Partnership?s Form 8-K filed on
March 27, 2006 and Form 8-K filed on April 5, 2006:

On April 11, 2006, the National Futures Association approved Mr.
Richard Gueren as a director of Demeter.

Item 6.  EXHIBITS
31.01	Certification of President of Demeter Management
Corporation, the general partner of the Partnership
pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.02	Certification of Chief Financial Officer of Demeter
Management Corporation, the general partner of the
Partnership pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002.
32.01	Certification of President of Demeter Management
Corporation, the general partner of the Partnership,
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002.
32.02	Certification of Chief Financial Officer of Demeter
Management Corporation, the general partner of the
Partnership, pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002.









<page>



SIGNATURE



Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.



                        Morgan Stanley Spectrum Currency L.P.
                          (Registrant)

                        By:   Demeter Management Corporation
                              (General Partner)

May 15, 2006            By:/s/ Kevin Perry
                               Kevin Perry
                               Chief Financial Officer





The General Partner which signed the above is the only party
authorized to act for the Registrant.  The Registrant has no
principal executive officer, principal financial officer,
controller, or principal accounting officer and has no Board of
Directors.
- 7 -
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MORGAN STANLEY SPECTRUM CURRENCY L.P.
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)

? 10 ?