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 June 30, 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

	June 30, 2006

<caption>


PART I. FINANCIAL INFORMATION

				<c>
Item 1. Financial Statements

		Statements of Financial Condition as of June 30, 2006
		(Unaudited) and December 31, 2005	2

		Statements of Operations for the Three and Six Months
	  Ended June 30, 2006 and 2005 (Unaudited) 	3

		Statements of Changes in Partners? Capital for the
		Six Months Ended June 30, 2006 and 2005 (Unaudited)	4

		Statements of Cash Flows for the Six Months
		Ended June 30, 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	12-25

Item 3.	Quantitative and Qualitative Disclosures about
			Market Risk	25-35

Item 4.	Controls and Procedures	35


PART II. OTHER INFORMATION

Item 1A.Risk Factors 	36

Item 2.	Unregistered Sales of Equity Securities and Use of
			Proceeds.	.36-37

Item 5.	Other Information	37

Item 6.	Exhibits 	37-38
</table>


<page> <table> PART I.  FINANCIAL INFORMATION

Item 1.  Financial Statements

	MORGAN STANLEY SPECTRUM CURRENCY L.P.
	STATEMENTS OF FINANCIAL CONDITION
<caption>
	June 30,	December 31,
	       2006      	              2005
	 $	$
	(Unaudited)
ASSETS

	<c>	<c>
Equity in futures interests trading accounts:
	Unrestricted cash	173,502,508	207,952,625
	Restricted cash                                                                                    86,977		         ?

	     Total cash	173,589,485	207,952,625

	Net unrealized gain (loss) on open contracts (MS & Co.)	        (80,376)	     6,202,194

		Total Trading Equity	173,509,109	214,154,819

Subscriptions receivable	1,696,687	1,355,204
Interest receivable (Morgan Stanley DW)	         548,681   	         559,983

	     Total Assets	  175,754,477        	     216,070,006

LIABILITIES AND PARTNERS? CAPITAL

Liabilities

Redemptions payable	2,870,167	6,346,278
Accrued brokerage fees (Morgan Stanley DW)	685,789	862,131
Accrued management fees	        298,169	       374,840

	     Total Liabilities	    3,854,125	    7,583,249

Partners? Capital

Limited Partners (15,916,000.150 and
   17,508,991.514 Units, respectively)	170,047,476	206,199,270
General Partner (173,424.343 and
    194,237.343 Units, respectively)	     1,852,876	    2,287,487

	     Total Partners? Capital	  171,900,352	 208,486,757

	     Total Liabilities and Partners? Capital	   175,754,477  	   216,070,006


NET ASSET VALUE PER UNIT	              10.68	           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 Three Months	                            For the Six Months
  	       Ended June 30,                                    Ended June 30,


                                           2006   	        2005    	    2006   	    2005
                                              $	           $	     $	 	 $

	<c>	<c>		<c>	<c>
INVESTMENT INCOME
	Interest income (Morgan Stanley DW)	   1,670,661		    1,249,338 		   3,288,384		  	      2,291,226

EXPENSES
	Brokerage fees (Morgan Stanley DW)	2,045,125	2,666,395	4,353,899		5,583,105
	Management fees	            889,186	    1,159,302	     1,893,001		   2,427,436

		   Total Expenses 	    2,934,311	      3,825,697	    6,246,900		     8,010,541

NET INVESTMENT LOSS 	   (1,263,650)	    (2,576,359)	  (2,958,516)		  (5,719,315)

TRADING RESULTS
Trading profit (loss):
	Realized	(4,187,649) 	(1,153,271)	(9,630,687)		(22,811,306)
	Net change in unrealized	    6,666,422	     25,105,316 	   (6,282,570)   	     (2,787,057)

		   Total Trading Results	    2,478,773	   23,952,045	  (15,913,257)		  (25,598,363)

NET INCOME (LOSS)                                            1,215,123        	  21,375,686	  (18,871,773)		 (31,317,678)

NET INCOME (LOSS) ALLOCATION

	Limited Partners	1,199,613	   21,145,041	(18,668,529)		(30,985,386)
	General Partner 	15,510	230,645	             		(203,244)	(332,292)


NET INCOME (LOSS) PER UNIT

	Limited Partners                                            	      0.06 	                   1.08	(1.10)	 	(1.67)
	General Partner                                             	       0.06	                   1.08	(1.10) 	 	(1.67)


<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 Six Months Ended June 30, 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	2,368,207.836	28,587,348	170,000	28,757,348

Net Loss                                                                    ? 	  	(30,985,386)	(332,292)	(31,317,678)

Redemptions	   (1,819,262.403)	   (22,011,184)	         ?     	 (22,011,184)

Partners? Capital,
   June 30, 2005	  19,503,334.618	 245,822,083	     2,707,133	 248,529,216





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

Offering of Units	942,726.950	10,338,757	? 	10,338,757

Net Loss                                                                    ? 	  	(18,668,529)	(203,244)	(18,871,773)

Redemptions	   (2,556,531.314)	   (27,822,022)	   (231,367)	 (28,053,389)

Partners? Capital,
   June 30, 2006	  16,089,424.493	 170,047,476	     1,852,876	 171,900,352



<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 Six Months Ended June 30,

	      2006     	      2005
	      $	      $


CASH FLOWS FROM OPERATING ACTIVITIES

			<c>	<c>
Net loss 	(18,871,773)	(31,317,678)
Noncash item included in net loss:
       Net change in unrealized	6,282,570	 2,787,057

(Increase) decrease in operating assets:
       Restricted cash	(86,977)	169,680
       Interest receivable (Morgan Stanley DW)	11,302	(115,476)

Decrease in operating liabilities:
       Accrued brokerage fees (Morgan Stanley DW)	(176,342)	(88,307)
       Accrued management fees	          (76,671)	         (38,395)

Net cash used for operating activities	   (12,917,891)	  (28,603,119)


CASH FLOWS FROM FINANCING ACTIVITIES

Cash received from offering of Units	9,997,274	33,199,895
Cash paid for redemptions of Units	    (31,529,500)	   (20,484,542)

Net cash provided by (used for) financing activities	    (21,532,226)	   12,715,353

Net decrease in unrestricted cash	   (34,450,117)	(15,887,766)

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

Unrestricted cash at end of period	   173,502,508	  237,334,801



<fn>



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

</table>


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

June 30, 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
                     $          $            $

Jun. 30, 2006	-	(80,376)	(80,376)	-	Sep. 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
credit risk associated with the instruments in which the
<page> MORGAN STANLEY SPECTRUM CURRENCY L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

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
meet margin requirements equal to the net unrealized loss on open
<page> MORGAN STANLEY SPECTRUM CURRENCY L.P.
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)

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 and six month
periods ended June 30, 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
<page> difficult to discuss 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 Three and Six Months Ended June 30, 2006
The Partnership recorded total trading results including interest
income totaling $4,149,434 and expenses totaling $2,934,311,
resulting in net income of $1,215,123 for the three months ended
June 30, 2006.  The Partnership?s net asset value per Unit
increased from $10.62 at March 31, 2006 to $10.68 at June 30,
2006.

The most significant trading gains of approximately 4.4%, 0.8%,
0.7%, 0.4%, and 0.3%, respectively, were experienced during April
and May from long positions in the euro, Norwegian krone, British
pound, Singapore dollar, and Czech koruna versus the U.S. dollar
as the U.S. dollar weakened against its major rivals. In April,
the U.S. dollar trended lower on news that foreign central banks
were diversifying their currency reserves away from the U.S.
dollar. Also contributing to the U.S. dollar?s decline was
increased speculation that the U.S. Federal Reserve may pause its
interest rate tightening campaign. During May, the U.S. dollar
continued to be pressured lower versus the euro and British pound
as benign inflation data and weaker-than-expected housing starts
data boosted speculation that the U.S. Federal Reserve is nearing
the end of its interest rate tightening policy. In addition, the
<page> value of the U.S. dollar was negatively affected by the
persistent tensions between the U.S. and Iran over Iran?s uranium
enrichment program. Conversely, strong manufacturing data out of
the United Kingdom supported the British pound, while the euro
strengthened after Dutch Finance Minister Gerritt Zalm said that
the European Central Bank will not intervene to halt the
appreciation of the euro, as well as on increased expectations of
an interest rate hike in the near-future by the European Central
Bank. Additional gains of approximately 2.8% experienced in May
and June resulted from short positions in the South African rand
versus the U.S. dollar as the rand fell in tandem with falling
commodities prices, news that South Africa?s Current-Account
deficit widened to a 24-year high, and expectations that the
country?s Gross Domestic Product growth will be weaker-than-
expected. Additional gains of approximately 0.6% were experienced
from short positions in the Mexican peso versus the U.S. dollar
as the value of the peso declined against the U.S. dollar,
primarily during April, amid continuing political uncertainty in
the country. A portion of the Partnership?s gains in the second
quarter was offset by losses of approximately 3.9%, 1.8%, 1.1%,
and 0.8%, primarily incurred in April, from short positions in
the Japanese yen, Australian dollar, Swiss franc, and New Zealand
dollar versus the U.S. dollar as the value of the U.S. dollar
moved lower due to the aforementioned reasons. In addition to the
U.S. dollar weakening, the Japanese yen strengthened on
speculation of a possible Bank of Japan interest rate hike, while
<page> the Swiss franc moved higher on political tensions in the
Middle East, which increased the demand for the safe-haven
currency. The Australian dollar also moved higher on an
unexpected interest rate hike by the Reserve Bank of Australia in
May. Smaller losses of approximately 0.9% were incurred from long
positions in the Brazilian real versus the U.S. dollar as the
value of the Brazilian real fell in May amid weakness in the
emerging markets. Further losses were experienced from newly
established short positions in the Brazilian real as it
strengthened against the U.S. dollar in June on speculation that
the U.S. Federal Reserve may be near the end of its interest rate
tightening campaign.

The Partnership recorded total trading results including interest
income totaling $(12,624,873) and expenses totaling $6,246,900,
resulting in a net loss of $18,871,773 for the six months ended
June 30, 2006.  The Partnership?s net asset value per Unit
decreased from $11.78 at December 31, 2005 to $10.68 at June 30,
2006.

The most significant trading losses of approximately 8.1%, 3.8%,
1.9%, and 0.5%, respectively, resulted from short positions in
the Japanese yen, Swiss franc, Australian dollar, and Norwegian
krone versus the U.S. dollar. During April and May, the U.S.
dollar moved lower on news that foreign central banks are
beginning to diversify their currency reserves away from U.S.
<page> dollar-denominated assets, as well as uncertainty
regarding the future of the U.S. Federal Reserve?s interest rate
tightening campaign. The Japanese yen, Swiss franc, and Norwegian
krone moved higher against the U.S. dollar during January and
February as strong economic data out of the two regions increased
speculation that the Bank of Japan and European Central Bank may
raise interest rates. During April, the Japanese yen strengthened
on speculation of a possible Bank of Japan interest rate hike,
while the Swiss franc moved higher on political tensions in the
Middle East. The Australian dollar also moved higher on an
unexpected interest rate hike by the Reserve Bank of Australia in
May. Additional losses of approximately 1.0% were incurred from
long positions in the Brazilian real versus the U.S. dollar as
the value of the Brazilian real fell in May amid weakness in the
emerging markets. Newly established short positions in the
Brazilian real incurred further losses as it strengthened against
the U.S. dollar in June on speculation that the U.S. Federal
Reserve may be near the end of its interest rate tightening
campaign. Smaller losses of approximately 0.9% 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. A portion of the Partnership?s losses in the first
six months of the year was offset by gains of approximately 2.7%
and 2.7%, respectively, recorded from short positions in the
South African rand versus the U.S. dollar and long positions in
<page> the euro against the U.S. dollar.  The South African rand
weakened against the U.S. dollar during June as the ?commodity-
currency? fell in tandem with falling gold prices. Meanwhile, the
euro strengthened relative to the U.S. dollar after Dutch Finance
Minister Gerritt Zalm said that the European Central Bank will
not intervene to halt the appreciation of the euro, as well as on
increased expectations of an interest rate hike in the near-
future by the European Central Bank. Smaller gains of
approximately 1.6% were recorded from long positions in the
Singapore dollar as it benefited from the declining U.S. dollar.
Additional gains of approximately 1.0% were experienced,
primarily during March, from short positions in the New Zealand
dollar versus the U.S. dollar as the value of the New Zealand
dollar trended lower on expectations for an economic slowdown in
New Zealand. Further gains of 0.5% were recorded from short
positions in the Mexican peso versus the U.S. dollar as the value
of the peso declined against the U.S. dollar, primarily during
April, amid continuing political uncertainty in that country.

For the Three and Six Months Ended June 30, 2005
The Partnership recorded total trading results including interest
income totaling $25,201,383 and expenses totaling $3,825,697,
resulting in net income of $21,375,686 for the three months ended
June 30, 2005.  The Partnership?s net asset value per Unit
increased from $11.66 at March 31, 2005 to $12.74 at June 30,
2005.
<page>
The most significant trading gains of approximately 6.9% and
3.0%, respectively, resulted during May and June from short
positions in the euro and Swiss franc versus the U.S. dollar.
During May, the U.S. dollar increased after China downplayed
rumors of a move toward a flexible exchange rate, while the value
of the euro and Swiss franc moved lower on weaker-than-expected
French economic data, the rejection of a proposed European Union
constitution by French voters, and speculation that future
European Constitutional referendums would result in similar
outcomes.  During June, short euro and Swiss franc positions
continued to profit as European currency values declined amid
market pessimism for future European integration, the release of
weak European economic data, and greater-than-expected capital
outflows into U.S. markets.  The U.S. dollar also increased
against other currencies in June following the ninth consecutive
quarter-point increase in U.S. interest rates.  Additional
Partnership gains of approximately 2.1% and 1.1%, respectively,
were recorded primarily during May and June from long positions
in the Mexican peso and Brazilian real versus the U.S. dollar as
the value of these currencies moved higher after Mexico?s central
bank representatives elected not to change Mexico?s monetary
policy and Brazil?s Minister of Finance reported increased
foreign investment in Brazil.  During June, the peso?s value
moved higher amid comments from Mexico?s Finance Minister,
Francisco Gil Diaz, that the Mexican economy was on track to meet
<page> the government's growth estimates for the year.  Further
Partnership gains of approximately 2.1% were experienced from
short positions in the Japanese yen versus the U.S. dollar as the
yen?s value declined during May and June in response to weak
Japanese economic data.  A portion of the Partnership?s gains was
offset by losses of approximately 4.1% recorded from long
positions in the British pound versus the U.S. dollar as the
pound?s value declined during May after British Prime Minister
Tony Blair's Labour Party re-election with a reduced government
majority, and then moved lower during June on growing speculation
that the interest rate differential between the U.S. and the U.K.
would tighten.  Smaller Partnership losses of approximately 0.8%
stemmed from long positions in the Australian dollar versus the
U.S. dollar as the Australian dollar declined amid falling gold
prices, primarily during May.

The Partnership recorded total trading results including interest
income totaling $(23,307,137) and expenses totaling $8,010,541,
resulting in a net loss of $31,317,678 for the six months ended
June 30, 2005.  The Partnership?s net asset value per Unit
decreased from $14.41 at December 31, 2004 to $12.74 at June 30,
2005.

The most significant trading losses of approximately 5.7%, 1.2%,
and 1.0%, respectively, resulted from positions in the South
African rand, New Zealand dollar, and Australian dollar
<page> (collectively the ?Commodity Currencies?) versus the U.S.
dollar. During the first quarter, losses resulted as the values
of the Commodity Currencies traded counter to the U.S. dollar due
to a variety of macroeconomic stimuli that caused the U.S.
dollar?s value to advance.  During the second quarter, the values
of the Commodity Currencies were impacted by speculation for
higher interest rates and falling gold prices.  Additional
Partnership losses of approximately 4.1% were incurred from long
positions in the British pound versus the U.S. dollar as the
pound?s value declined during May after British Prime Minister
Tony Blair's Labour Party re-election with a reduced government
majority, and then moved lower during June on growing speculation
that the interest rate differential between the U.S. and the U.K.
would tighten.  Further losses of approximately 1.8% were
incurred from positions in the Singapore dollar versus the U.S.
dollar, primarily during February and March.  During February,
long Singapore dollar positions incurred losses as the U.S.
dollar?s value benefited from positive economic sentiment.  Newly
established short Singapore dollar positions also incurred losses
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 Singapore dollar positions resulted
in losses as the U.S. dollar reversed sharply higher amid an
increase in U.S. interest rates and U.S. consumer prices.
Smaller Partnership losses of approximately 0.7% were experienced
<page> from positions in the euro versus the U.S. dollar
primarily during the first quarter after the U.S. dollar?s value
moved higher during January amid improvements in the U.S.
Current- Account, speculation for higher U.S. interest rates, and
news that the Chinese government postponed its re-valuation of
the Chinese yuan.  During February, losses were incurred from
short euro positions as the U.S. dollar?s value weakened due to
concern for the U.S. Current-Account deficit as expressed by U.S.
Federal Reserve Chairman Alan Greenspan.  During early March,
short euro positions continued to experience losses as its value
strengthened amid a sharp rise in German industrial production.
A portion of the Partnership?s losses for the first six months of
the year was offset by gains of approximately 2.6% experienced
from short positions in the Japanese yen versus the U.S. dollar
as the yen?s value declined during May and June in response to
weak Japanese economic data. Smaller Partnership gains of
approximately 1.1% were recorded from short positions in the
Swiss franc versus the U.S. dollar after the U.S. dollar
increased during May as China downplayed rumors of a move toward
a flexible exchange rate and the franc moved lower on weaker-
than-expected French economic data, the rejection of a proposed
European Union constitution by French voters, and speculation
that future European Union constitution referendums would result
in similar outcomes.  During June, short Swiss franc positions
continued to profit as European currency values declined amid
market pessimism for future European integration, the release of
<page> weak European economic data, and greater-than-expected
capital outflows into U.S. markets.

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
contract, however, the Partnership is required to meet margin
<page> 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
ruin?) that far exceed the Partnership?s experience to date under
<page> 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
Partnership estimates VaR using a model based upon historical
<page> 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
contract and do not distinguish between exchange and non-exchange
<page> 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 June 30, 2006 and 2005.  At
June 30, 2006 and 2005, the Partnership?s total capitalization
was approximately $172 million and $249 million, respectively.

Primary Market		   June 30, 2006	     June 30, 2005
Risk Category		   Value at Risk		Value at Risk
Currency				 (1.80)%			    (3.97)%

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 <page>
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 July 1, 2005 through June 30, 2006.

Primary Market Risk Category        High      Low      Average
Currency   					(2.68)%	(1.40)%	(2.07)%

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;

<page>
*	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 June 30, 2005, and for the
four quarter-end reporting periods from July 1, 2005 through June
30, 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
the VaR amounts indicated above or that such losses will not
occur more than once in 100 trading days.

<page>
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 June 30, 2006.

The Partnership also maintains a substantial portion of its
available assets in cash at Morgan Stanley DW; as of June 30,
2006, such amount is equal to approximately 102% 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
statements of historical fact and (B) the descriptions of how the
Partnership manages its primary market risk exposures ? <page>
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 June 30, 2006.  It may be anticipated, however,
that market exposure will vary materially over time.

Currency.  At June 30, 2006, the Partnership had market exposure
in the currency sector.  Exposure was to exchange rate
fluctuations, primarily fluctuations which disrupt the historical
pricing relationships between different currencies and currency
<page> pairs.  Interest rate changes, as well as political and
general economic conditions influence these fluctuations.  At
June 30, 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 June 30, 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
maximum margin to be committed to positions in any one market
sector or market-sensitive instrument.

<page> 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> <table>  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, 2005 and the Partnership?s
Report on Form 10-Q for the quarter ended March 31, 2006.

Item 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF
	    PROCEEDS
<caption>
					 SEC
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 6/30/06	      26,563,091.650
Units unsold through 6/30/06    25,436,908.350
</table>

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 June 30, 2006 was
$347,711,521.
<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 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 May 11, 2006, the National Futures Association approved Mr.
Walter Davis, Mr. Michael McGrath, and Mr. Andrew Saperstein as
directors of Demeter.

On July 20, 2006, the National Futures Association approved Mr.
Walter Davis as an associated person 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.
<page>
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)

August 14, 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 -
- 10 -










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

1244: