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, 2007 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, 2007

<caption>


PART I. FINANCIAL INFORMATION

				<c>
Item 1. Financial Statements

		Statements of Financial Condition as of March 31, 2007
		(Unaudited) and December 31, 2006	2

		Statements of Operations for the Quarters Ended
		March 31, 2007 and 2006 (Unaudited)	3

		Statements of Changes in Partners? Capital for the
		Quarters Ended March 31, 2007 and 2006 (Unaudited)	4

		Statements of Cash Flows for the Quarters Ended
		March 31, 2007 and 2006 (Unaudited)	5

		Notes to Financial Statements (Unaudited)	6-13

Item 2.	Management?s Discussion and Analysis of
			Financial Condition and Results of Operations	14-23

Item 3.	Quantitative and Qualitative Disclosures about
			Market Risk	23-33

Item 4.	Controls and Procedures	33-34

Item 4T.	Controls and Procedures	34


PART II. OTHER INFORMATION

Item 1A.Risk Factors 	35

Item 2.	Unregistered Sales of Equity Securities and Use of
			Proceeds.	.35-36

Item 6.	Exhibits 	36

</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,
	       2007      	              2006
	 $	$
	(Unaudited)
ASSETS

	<c>	<c>
Equity in futures interests trading accounts:
	Unrestricted cash	140,405,793	162,737,117
	Restricted cash                                                                               1,329,259		         ?

	     Total cash	141,735,052	162,737,117

	Net unrealized gain on open contracts (MS&Co.)	     2,124,523	     4,534,033

		Total Trading Equity	143,859,575	167,271,150

Subscriptions receivable	891,581	759,216
Interest receivable (Morgan Stanley DW)	        512,427   	         560,751

	     Total Assets	  145,263,583        	     168,591,117

LIABILITIES AND PARTNERS? CAPITAL

Liabilities

Redemptions payable	3,378,287	4,643,347
Accrued brokerage fees (Morgan Stanley DW)	577,020	626,181
Accrued management fees	        250,879	       272,253

	     Total Liabilities	     4,206,186	    5,541,781

Partners? Capital

Limited Partners (13,575,060.952 and
   14,173,942.826 Units, respectively)	139,481,389	161,303,764
General Partner (153,385.343 Units)	     1,576,008	    1,745,572

	     Total Partners? Capital	  141,057,397	 163,049,336

	     Total Liabilities and Partners? Capital	     145,263,583  	   168,591,117

NET ASSET VALUE PER UNIT	                                                                10.27	           11.38
<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,


                                                                         		        2007    	     2006
                                                                               	                    $		       $

		<c>			<c>
INVESTMENT INCOME
	Interest income (Morgan Stanley DW)		    1,530,601			    1,617,723

EXPENSES
	Brokerage fees (Morgan Stanley DW)		1,813,651	2,308,774
	Management fees	   	          788,545	     1,003,815

		Total Expenses		     2,602,196	     3,312,589

NET INVESTMENT LOSS	    (1,071,595)	    (1,694,866)

TRADING RESULTS
Trading loss:
	Realized			(12,109,259)	 (5,443,038)
	Net change in unrealized		     (2,409,510)	   (12,948,992)

		Total Trading Results		   (14,518,769)	   (18,392,030)

NET LOSS 	    (15,590,364)	   (20,086,896)


NET LOSS ALLOCATION

	Limited Partners                                                  	 	           (15,420,800)	 (19,868,142)
	General Partner                                                   		(169,564)              	 (218,754)


NET LOSS PER UNIT

	Limited Partners                                                  		            (1.11)	(1.16)
	General Partner                                                   		    (1.11)  	(1.16)



<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, 2007 and 2006
	(Unaudited)


<caption>


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


	<c>	<c>	<c>	<c>
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





Partners? Capital,
   December 31, 2006	14,327,328.169	161,303,764	1,745,572	163,049,336

Offering of Units	257,990.178	2,781,930                  ?	 	2,781,930

Net Loss                                                                    ? 	  	(15,420,800)	(169,564)	(15,590,364)

Redemptions	     (856,872.052)	   (9,183,505)	             ?      	   (9,183,505)

Partners? Capital,
   March 31, 2007	  13,728,446.295	 139,481,389	     1,576,008	 141,057,397



<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,

	      2007     	      2006
	      $	      $


CASH FLOWS FROM OPERATING ACTIVITIES

			<c>	<c>
Net loss 	(15,590,364)	(20,086,896)
Noncash item included in net loss:
       Net change in unrealized	2,409,510	12,948,992

(Increase) decrease in operating assets:
       Restricted cash	(1,329,259)	(6,746,798)
       Interest receivable (Morgan Stanley DW)	48,324	(14,910)

Decrease in operating liabilities:
       Accrued brokerage fees (Morgan Stanley DW)	(49,161)	(130,484)
       Accrued management fees	         (21,374)	          (56,733)

Net cash used for operating activities	    (14,532,324)	   (14,086,829)


CASH FLOWS FROM FINANCING ACTIVITIES

Cash received from offering of Units	2,649,565	4,736,314
Cash paid for redemptions of Units	   (10,448,565)	     (16,798,222)

Net cash used for financing activities	     (7,799,000)	   (12,061,908)

Net decrease in unrestricted cash	(22,331,324)	(26,148,737)

Unrestricted cash at beginning of period	   162,737,117	   207,952,625

Unrestricted cash at end of period	   140,405,793	   181,803,888




<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, 2007

(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, 2006
Annual Report on Form 10-K.

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.

The Partnership?s general partner is Demeter Management
Corporation (?Demeter?).  Effective April 1, 2007, Morgan Stanley

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

DW Inc. (?Morgan Stanley DW?), which previously acted as the non-
clearing broker, was merged into Morgan Stanley & Co.
Incorporated (?MS&Co.?), which has assumed all of the
responsibilities of Morgan Stanley DW.  Upon completion of the
merger, MS&Co. has become the Partnership?s principal commodity
broker-dealer and also acts as the counterparty on all trading
of foreign currency forward contracts.  The commodity brokers
prior to April 1, 2007, were Morgan Stanley DW and MS&Co.
Demeter and MS&Co. are wholly-owned subsidiaries of Morgan
Stanley.  The trading advisors to the Partnership are John W.
Henry & Company, Inc. (?JWH?) and Sunrise Capital Partners, LLC
(?Sunrise?) (individually, a ?Trading Advisor?, or collectively,
the ?Trading Advisors?).

Effective May 1, 2007, the Partnership?s assets were reallocated
as follows: 60% to Sunrise, and will be traded pursuant to the
Currency Program; 40% to JWH, and will be traded pursuant to the
International Foreign Exchange Program.

2.  Related Party Transactions
The Partnership?s cash is on deposit with Morgan Stanley DW
(through March 31, 2007) and MS&Co. in futures, forward, and
options trading accounts to meet margin requirements as needed.

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

Effective April 1, 2007, MS&Co. pays the Partnership interest
income on 80% of the funds on deposit with the commodity
brokers at month-end at a rate equal to the monthly average of
the 4-week U.S. Treasury bill discount rate during such month.
The Partnership pays brokerage fees to MS&Co. (Morgan Stanley DW,
prior to April 1, 2007).  Prior to April 1, 2007, Morgan Stanley
DW paid the Partnership monthly interest income on 80% of the
month?s average daily Net Assets at a rate equal to a prevailing
rate on U.S. Treasury bills.


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
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

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

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:

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.


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

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

The net unrealized gains 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
                        on Open Contracts                Longest Maturities

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

Mar. 31, 2007        -		2,124,523	2,124,523	-	Jun. 2007
Dec. 31, 2006	- 	4,534,033	4,534,033	-	Mar. 2007

The Partnership has credit risk associated with counterparty non-
performance.  As of the date of the financial statements, the
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
(through March 31, 2007) and MS&Co. act as the futures commission
merchants or the counterparties, with respect to most of the

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

Partnership?s assets. Exchange-traded futures, exchange-traded
forward, and exchange-traded futures-styled options contracts are
marked to market on a daily basis, with variations in value
settled on a daily basis.  Morgan Stanley DW (through March 31,
2007) and MS&Co., each as a futures commission merchant for the
Partnership?s exchange-traded futures, exchange-traded forward,
and exchange-traded futures-styled options contracts, are
required, pursuant to regulations of the Commodity Futures Trading
Commission (?CFTC?), to segregate from its own assets, and for the
sole benefit of its commodity customers, all funds held by it
with respect to exchange-traded futures, exchange-traded forward,
and exchange-traded futures-styled options contracts, including
an amount equal to the net unrealized gains (losses) on all open
exchange-traded futures, exchange-traded forward, and exchange-
traded futures-styled options contracts.  With respect to the
Partnership?s off-exchange-traded forward currency contracts,
there are no daily settlements of variation in value, nor is
there any requirement that an amount equal to the net unrealized
gains (losses) on such contracts be segregated.  However, the
Partnership is required to meet margin requirements equal to the
net unrealized loss on open forward currency 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
<page> MORGAN STANLEY SPECTRUM CURRENCY L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

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.


4.  New Accounting Developments
In July 2006, the Financial Accounting Standards Board (?FASB?)
issued interpretation No. 48, ?Accounting for Uncertainty in
Income Taxes ? an interpretation of FASB Statement 109? (?FIN
48?).  FIN 48 clarifies the accounting for income taxes by
prescribing the minimum recognition threshold a tax position must
meet before being recognized in the financial statements.  FIN 48
is effective for the Partnership as of January 1, 2007.  Based on
its analysis, management believes that the adoption of FIN 48
will not impact the Partnership?s Financial Statements.

In September 2006, the FASB issued SFAS No. 157, ?Fair Value
Measurements? (?SFAS No. 157?).  SFAS No. 157 defines fair value,
establishes a framework for measuring fair value, and expands
disclosures about fair value measurements.  SFAS No. 157 is

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

effective for the Partnership as of January 1, 2008.  The impact
to the Partnership?s Financial Statements, if any, is currently
being assessed.

<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 (through March 31, 2007) and MS&Co. as commodity
brokers in separate futures, forward, 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 does it
expect 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,
forward, and options markets.  The following presents a summary
of the Partnership?s operations for the three month periods ended
March 31, 2007, and 2006, 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 13 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 a foreign currency forward
contract 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, 2007
The Partnership recorded total trading results including interest
income totaling $(12,988,168) and expenses totaling $2,602,196,
resulting in a net loss of $15,590,364 for the quarter ended
March 31, 2007.  The Partnership?s net asset value per Unit
decreased from $11.38 at December 31, 2006, to $10.27 at March
31, 2007.

The most significant trading losses of approximately 3.7% were
experienced from both short and long positions in the South
African rand versus the U.S. dollar as the value of the South
African rand moved without consistent direction throughout a
majority of January.  Further losses were incurred from short
positions in the South African rand versus the U.S. dollar as the
value of the South African rand strengthened relative to the U.S.
dollar at the beginning of March on expectations that increased
demand for South Africa?s exports would significantly improve the
South African economy.  Elsewhere, losses of approximately 2.1%
were recorded during February and early March from long positions
in the British pound versus the U.S. dollar as the value of the
British pound weakened against the U.S. dollar after a report
<page> showed U.K. services growth had slowed in January and on
speculation that the Bank of England would not continue to
increase interest rates in the near-term.  Additional losses of
approximately 1.1% and 0.9% respectively, were experienced from
long positions in the New Zealand dollar and Australian dollar
versus the U.S. dollar during January as the value of the U.S.
dollar moved higher against these currencies after economic data
suggested that the U.S. Federal Reserve would not cut interest
rates in the near-term.  Newly established short positions in the
New Zealand dollar versus the U.S. dollar resulted in losses
during February as the value of the New Zealand dollar moved
higher in tandem with rising commodity prices.  During March,
losses were incurred from both short and long positions in the
Australian dollar versus the U.S. dollar as the value of the
Australian dollar moved without consistent direction throughout
the month.  Meanwhile, losses of approximately 1.0% were recorded
from short positions in the Mexican peso versus the U.S. dollar
during March as the value of the Mexican peso strengthened on
increased speculation of an interest rate hike from the Bank of
Mexico.  Smaller losses of approximately 0.8% were experienced
during late February and early March from short positions in the
Japanese yen versus the U.S. dollar as the value of the Japanese
yen reversed sharply higher against the U.S. dollar in late
February due to a combination of factors including an almost 10%
drop in the Shanghai stock market and a warning from Rodrigo
Rato, Managing Director of the International Monetary Fund, that
<page> a weak yen ?could lead to more entrenched exchange rate
misalignments that worsen global imbalances? encouraging traders
to unwind short positions in the Japanese yen against most of its
major rivals.  Elsewhere in the currency markets, losses of
approximately 0.5%, 0.4%, and 0.4% respectively, were experienced
from both short and long positions in the Polish zloty, Norwegian
krone, and Czech koruna versus the U.S. dollar as the value of
these currencies moved in a trendless manner throughout a
majority of the quarter.  Finally, losses of approximately 0.2%
were experienced during February from short positions in the
Swiss franc versus the U.S. dollar as the value of the Swiss
franc reversed higher against the U.S. dollar due to speculation
of a narrowing interest-rate differential.  A portion of these
losses for the quarter was offset by gains of approximately 1.3%
and 0.4% respectively, primarily during February and March, from
long positions in the Brazilian real and Singapore dollar versus
the U.S. dollar as the value of these currencies finished higher
against the U.S. dollar after the U.S. Federal Reserve kept the
benchmark interest rate steady and indicated that rates would not
likely increase in the near-term.  Further gains of approximately
0.4% were experienced from long positions in the euro versus the
U.S. dollar as the value of the euro moved higher against the
U.S. dollar during March amid a record U.S. trade deficit and
indications from European Central Bank council member Klaus
Liebscher that interest rates in the Euro-Zone could increase
further.
<page> 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
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 might move to tighten monetary
<page> 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 U.S. 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 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 <page>
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.

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.
<page> 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, exchange-traded forward, and exchange-
traded futures-styled options contracts are settled daily through
variation margin.  Gains and losses on off-exchange-traded
forward currency contracts are settled upon termination of the
contract.  However, the Partnership is required to meet margin
requirements equal to the net unrealized loss on open forward
currency 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.

<page> 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
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
<page> 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
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
<page> 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
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.


<page> 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, 2007 and 2006.  At
March 31, 2007 and 2006, the Partnership?s total capitalization
was approximately $141 million and $178 million, respectively.

Primary Market		   March 31, 2007	    March 31, 2006
Risk Category		   Value at Risk		Value at Risk
Currency				  (3.71)%			    (1.40)%

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
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.
Such change 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, 2006, through March 31, 2007.


<page>
Primary Market Risk Category        High      Low      Average
Currency   					(3.92)%	(1.80)%	(3.09)%

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;
*	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.
<page>
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, 2006, and for the
four quarter-end reporting periods from April 1, 2006, through
March 31, 2007.  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
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, 2007.

The Partnership also maintains a substantial portion of its
available assets in cash at MS&Co. (Morgan Stanley DW, prior to
April 1, 2007); as of March 31, 2007, such amount is equal to
approximately 100% of the Partnership?s net asset value.  A
decline in short-term interest rates would result in a decline in
<page> 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
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 <page>
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, 2007.  It may be anticipated, however,
that market exposure will vary materially over time.

Currency.  The Partnership?s currency market exposure at March
31, 2007, was to exchange rate 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, 2007, 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.



<page>
Qualitative Disclosures Regarding Non-Trading Risk Exposure
At March 31, 2007, 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
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 <page>
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.

Item 4T.	CONTROLS AND PROCEDURES
Not applicable.
<page> PART II.  OTHER INFORMATION
Item 1A. RISK FACTORS
There have been no material changes from the risk factors
previously referenced in the Partnership?s Report on Form 10-K for
the fiscal year ended December 31, 2006.
 <table>
Item 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF
	    PROCEEDS
				                            SEC
1081:  Registration Statement on Form S-1  Units Registered   Effective Date  File Number

                                          <c>                                                <c>                    <c>
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 3/31/07	      27,396,423.903
Units unsold through 3/31/07    24,603,576.097

</table>
The managing underwriter for the Partnership is MS&Co. (Morgan
Stanley DW, prior to April 1, 2007).

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, 2007, was
$356,665,510.

<page> 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
Proceeds? section of the prospectus included as part of the above
referenced Registration Statements.

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, 2007            By:/s/ Lee Horwitz
                               Lee Horwitz
                               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.




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