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 September 30, 2005 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 an accelerated
filer (as defined in Rule 12b-2 of the Exchange Act).

Yes             No     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

	September 30, 2005

<caption>


PART I. FINANCIAL INFORMATION

				<c>
Item 1. Financial Statements

		Statements of Financial Condition as of September 30, 2005
		(Unaudited) and December 31, 2004	2

		Statements of Operations for the Three and Nine Months
		Ended September 30, 2005 and 2004 (Unaudited)	3

		Statements of Changes in Partners? Capital for the
		Nine Months Ended September 30, 2005 and 2004
		(Unaudited)	4

		Statements of Cash Flows for the Nine Months
		Ended September 30, 2005 and 2004 (Unaudited)	5

		Notes to Financial Statements (Unaudited)	6-11

Item 2.	Management?s Discussion and Analysis of
			Financial Condition and Results of Operations	12-26

Item 3.	Quantitative and Qualitative Disclosures about
			Market Risk	27-36

Item 4.	Controls and Procedures	37


PART II. OTHER INFORMATION

Item 2.	Unregistered Sales of Equity Securities and Use of
			Proceeds.	.38

Item 6.	Exhibits 	39

</table>


<page> <table> PART I.  FINANCIAL INFORMATION

Item 1.  Financial Statements

	MORGAN STANLEY SPECTRUM CURRENCY L.P.
	STATEMENTS OF FINANCIAL CONDITION
<caption>
	September 30,	December 31,
	       2005      	              2004
	 $	$
	(Unaudited)
ASSETS

	<c>	<c>
Equity in futures interests trading accounts:

	Cash	226,016,353	253,392,247
	Net unrealized gain on open contracts	    1,742,391	   16,647,953

		Total Trading Equity	227,758,744	270,040,200

Subscriptions receivable	1,719,747	6,690,404
Interest receivable (Morgan Stanley DW)	        503,685   	        315,539

	     Total Assets	 229,982,176        	     277,046,143

LIABILITIES AND PARTNERS? CAPITAL

Liabilities

Redemptions payable	5,079,339	2,499,153
Accrued brokerage fees (Morgan Stanley DW)	874,844	1,007,999
Accrued management fees	      380,367	       438,261

	     Total Liabilities	   6,334,550	  3,945,413

Partners? Capital

Limited Partners (18,767,267.666 and
   18,755,238.476 Units, respectively)	221,144,309	270,231,305
General Partner (212,442.343 and
   199,150.709 Units, respectively)	      2,503,317	    2,869,425

	     Total Partners? Capital	   223,647,626	 273,100,730

	     Total Liabilities and Partners? Capital	   229,982,176  	   277,046,143


NET ASSET VALUE PER UNIT	              11.78	           14.41

<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 Nine Months
  	             Ended September 30,    	         Ended September 30,


                               2005   	        2004    	    2005   	    2004
                                $	               $	     $	  $

	<c>	<c>	<c>			<c>
INVESTMENT INCOME
	Interest income (Morgan Stanley DW)	  1,491,227		    549,625 		    3,782,453		        1,277,060

EXPENSES
	Brokerage fees (Morgan Stanley DW)	2,772,180	2,474,049	8,355,285		7,320,339
	Management fees	1,205,299     	    1,075,673	3,632,735 		   3,182,757
	Incentive fee	          ?         	            ?            	         ?        		         177,763

		   Total Expenses 	   3,977,479	      3,549,722	 11,988,020		   10,680,859

NET INVESTMENT LOSS 	   (2,486,252)	    (3,000,097)	  (8,205,567)		  (9,403,799)

TRADING RESULTS
Trading profit (loss):
	Realized	(4,003,991) 	(22,895,308)	(26,815,297)		(49,407,274)
	Net change in unrealized	   (12,118,505)	      2,498,232 	   (14,905,562)		   (4,870,589)

		   Total Trading Results	  (16,122,496)	   (20,397,076)	(41,720,859)		  (54,277,863)

NET LOSS                           (18,608,748)      	  (23,397,173)	   (49,926,426)	 (63,681,662)

NET LOSS ALLOCATION

	Limited Partners	(18,404,932)	   (23,142,707)	(49,390,318)		(62,985,387)
	General Partner 	(203,816)	(254,466)	               (536,108)	(696,275)


NET LOSS PER UNIT

	Limited Partners	(0.96)                     (1.35)	(2.63)  		(4.08)
	General Partner	(0.96)                     (1.35)	(2.63)  		(4.08)

<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 Nine Months Ended September 30, 2005 and 2004
	(Unaudited)

<caption>



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


	<c>	<c>	<c>	<c>
Partners? Capital,
   December 31, 2003	12,139,408.225	188,042,673	2,013,247	190,055,920

Offering of Units	7,014,013.309	95,967,445	990,000	96,957,445

Net Loss                                                                   ? 	  	(62,985,387)	(696,275)	(63,681,662)

Redemptions	   (1,054,390.020)	   (13,671,637)	         ?     	 (13,671,637)

Partners? Capital,
   September 30, 2004	  18,099,031.514	 207,353,094	    2,306,972	 209,660,066





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

Offering of Units	2,981,240.348	36,025,172	170,000	36,195,172

Net Loss                                                                   ? 	  	(49,390,318)	(536,108)	(49,926,426)

Redemptions	   (2,955,919.524)	   (35,721,850)	         ?     	 (35,721,850)

Partners? Capital,
   September 30, 2005	   18,979,710.009	 221,144,309	    2,503,317	 223,647,626




<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 Nine Months Ended September 30,

	      2005     	      2004
	      $	      $

CASH FLOWS FROM OPERATING ACTIVITIES

			<c>	<c>
Net loss 	(49,926,426)	(63,681,662)
Noncash item included in net loss:
       Net change in unrealized	14,905,562	4,870,589

Increase in operating assets:
       Interest receivable (Morgan Stanley DW)	(188,146)	(95,655)

Increase (decrease) in operating liabilities:
       Accrued brokerage fees (Morgan Stanley DW)	(133,155)	131,982
       Accrued management fees	(57,894)	57,384
       Accrued incentive fee	            ?     	     (399,035)

Net cash used for operating activities	   (35,400,059)	  (59,116,397)


CASH FLOWS FROM FINANCING ACTIVITIES

Cash received from offering of Units	41,165,829	98,972,864
Cash paid from redemptions of Units	    (33,141,664)	   (12,936,630)

Net cash provided by financing activities	       8,024,165	  86,036,234

Net increase (decrease) in cash	(27,375,894)   	26,919,837

Balance at beginning of period	  253,392,247	 178,774,244

Balance at end of period	   226,016,353	  205,694,081




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

</table>


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

September 30, 2005

(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, 2004
Annual Report on Form 10-K.  Certain reclassifications have been
made to the prior year?s financial statements to conform to the
current year 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 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
                     $            $          $

Sep. 30, 2005	-	1,742,391	1,742,391	-	Dec. 2005
Dec. 31, 2004	         ?     16,647,953    16,647,953		-	Mar. 2005

The Partnership has credit risk associated with counterparty non-
performance.  The credit risk associated with the instruments in

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

which the Partnership trades is limited to the amounts reflected
in the Partnership?s Statements of Financial Condition.

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


Futures Trading Commission (?CFTC?), to segregate from their
own assets, and for the sole benefit of their commodity
customers, all funds held by them with respect to exchange-traded
futures, forward, and futures-styled options contracts, including
an amount equal to the net unrealized gains (losses) on all open
futures, forward, and futures-styled options contracts.  With
respect to the Partnership?s off-exchange-traded forward currency
contracts, there are no daily exchange-required settlements of
variation in value, nor is there any requirement that an amount
equal to the net unrealized gains (losses) on open forward
contracts be segregated.  However, the Partnership is required to
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 nine month
periods ended September 30, 2005 and 2004, 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
<page> are 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 Nine Months Ended September 30, 2005
The Partnership recorded total trading results including interest
income totaling $(14,631,269) and expenses totaling $3,977,479,
resulting in a net loss of $18,608,748 for the three months ended
September 30, 2005.  The Partnership?s net asset value per Unit
decreased from $12.74 at June 30, 2005 to $11.78 at September 30,
2005.

The most significant trading losses of approximately 4.0%, 1.4%,
0.9%, 0.6%, and 0.6%, respectively, resulted from positions in
the British pound, Norwegian krone, both the New Zealand and
Australian dollars, and the Czech koruna.  During July, long
positions in the British pound versus the U.S. dollar experienced
losses as the value of the pound dropped sharply on geopolitical
concerns after a terror attack on the London public
transportation system.  During August, long U.S. dollar positions
against the British pound, Norwegian krone, and Czech koruna
incurred losses as the value of the U.S. dollar declined amid
higher crude oil prices, lower durable goods orders, the U.S.
trade imbalance, and economic warnings from U.S. Federal Reserve
<page> Chairman Alan Greenspan.  Strong signals of euro-zone
economic improvement also supported the advance of the British
pound, Norwegian krone, and Czech koruna.  Short positions in the
New Zealand and Australian dollars versus the U.S. dollar
recorded losses as the values of those currencies moved higher on
strong economic data out of the region.  During September, losses
were recorded from short U.S. dollar positions against the
British pound, Norwegian krone, Czech koruna, and both the
Australian and New Zealand dollars, as the value of the U.S.
dollar advanced amid bolstered expectations that the U.S. Federal
Reserve would continue to raise interest rates. Also forcing the
New Zealand dollar lower against the U.S. dollar were fears for
an economic slow-down in New Zealand during 2006.  Additional
losses of approximately 1.0% were recorded from positions in the
Singapore dollar against the U.S. dollar.  During July, short
positions recorded losses after the Singapore dollar?s value
reversed higher in response to market expectations for future
economic growth in Singapore.  During August, losses stemmed from
long Singapore dollar positions after the value of the Singapore
dollar finished lower in response to disappointing export data.
Finally, smaller Partnership losses of approximately 0.1% were
recorded during August from short positions in the Swiss franc
against the U.S. dollar after the value of the U.S. dollar
weakened on disappointing economic data.  A portion of the
Partnership?s overall losses for the quarter was offset by gains
<page> of approximately 1.7% from short positions in the Japanese
yen versus the U.S. dollar during July and September.  During
July, gains resulted after the U.S. dollar?s value strengthened
against the yen on significant interest rate differentials
between the U.S. and Japan.  Market participants also drove the
U.S. dollar higher against the yen amid beliefs that U.S.
interest rates would increase further, the release of strong U.S.
economic data, and news that the U.S. Current-Account deficit had
narrowed.  During September, short Japanese yen positions
achieved gains after the yen?s value declined in the wake of weak
Japanese economic data, including industrial production, salaried
household spending, and the Tokyo consumer price index.

The Partnership recorded total trading results including interest
income totaling $(37,938,406) and expenses totaling $11,988,020,
resulting in a net loss of $49,926,426 for the nine months ended
September 30, 2005.  The Partnership?s net asset value per Unit
decreased from $14.41 at December 31, 2004 to $11.78 at September
30, 2005.

The most significant trading losses of approximately 12.2%
resulted from positions in European currencies against the U.S.
dollar.  Early during the first quarter, losses resulted from
long positions in the British pound, Norwegian krone, euro, Czech
koruna, and Swedish krona versus the U.S. dollar after the U.S.
<page> dollar?s value reversed sharply higher amid an increase in
U.S. interest rates and consumer prices.  The U.S. dollar?s value
also advanced in response to expectations that the Chinese
government would announce postponement of its revaluation of the
Chinese yuan.  During February, losses were incurred from short
European currency positions after the U.S. dollar?s value
weakened in response to concern for the considerable U.S.
Current-Account deficit as expressed by U.S. Federal Reserve
Chairman Alan Greenspan.  During early March, short European
currency positions continued to experience losses as their values
moved higher amid a sharp rise in German industrial production.
Further losses were recorded from newly established long European
currency positions versus the U.S. dollar as the U.S. dollar?s
value reversed sharply higher amid an increase in U.S. interest
rates and consumer prices.  During the second quarter, long
British pound positions incurred losses as the pound?s value
declined after British Prime Minister Tony Blair's Labour Party
won re-election with a reduced government majority, and then
moved lower later in the quarter on growing speculation that the
interest rate differential between the U.S. and the U.K. would
tighten.  During July, long British pound positions experienced
losses as the value of the pound dropped sharply on geopolitical
concerns after a terror attack on the London public
transportation system. During August, short British pound
positions incurred losses as the value of the U.S. dollar <page>
declined amid higher crude oil prices, lower durable goods
orders, the U.S. trade imbalance, and economic warnings from U.S.
Federal Reserve Chairman Alan Greenspan.  During September,
losses were recorded from long positions in the British pound,
Norwegian krone, and Czech koruna, as the value of the U.S.
dollar advanced amid bolstered expectations that the U.S. Federal
Reserve would continue to raise interest rates.  Additional
losses of approximately 5.5%, 2.1%, and 1.7%, respectively, were
recorded from positions in the South African rand and both the
New Zealand and Australian dollars (collectively the ?Commodity
Currencies?).  During the first quarter, losses stemmed from both
long and short positions against the yen versus the U.S. dollar
as the values of the Commodity Currencies traded counter to the
U.S. dollar, which benefited due to positive economic data.
During the second quarter, long positions in the Australian
dollar versus the U.S. dollar produced losses as the Australian
dollar declined amid falling gold prices.  During the third
quarter, short positions in the New Zealand and Australian
dollars versus the U.S. dollar recorded losses as the values of
the Commodity Currencies moved higher on strong economic data out
of the region.  During September, losses were recorded from long
Australian and New Zealand dollar positions as the value of the
U.S. dollar advanced amid bolstered expectations that the U.S.
Federal Reserve would continue to raise interest rates. Also
forcing the New Zealand dollar against the U.S. dollar lower were
<page> fears for an economic slow-down in New Zealand during
2006.  Partnership losses of approximately 2.9% were recorded
primarily during the first quarter from positions in the
Singapore dollar versus the U.S. dollar.  During February, long
positions in the Singapore dollar against the U.S. dollar
incurred losses early in the month as the U.S. dollar?s value
benefited from positive economic sentiment.  Newly established
short Singapore dollar positions also incurred losses later in
the month after the U.S. dollar weakened due to a larger-than-
expected drop in January leading economic indicators and news
that South Korea?s Central Bank planned to reduce its U.S. dollar
currency reserves.  During March, long positions in the Singapore
dollar versus the U.S. dollar resulted in losses as the value of
the U.S. dollar reversed sharply higher amid an increase in U.S.
interest rates and U.S. consumer prices.  Positions in the
Singapore dollar against the U.S. dollar held during the third
quarter also contributed to sector losses.  A portion of the
Partnership?s overall losses for the first nine months of the
year was offset by gains of approximately 4.4% from short
positions in the Japanese yen against the U.S. dollar.  During
March, gains resulted as the U.S. dollar advanced against the yen
due to an increase in U.S. interest rates by the U.S. Federal
Reserve.  Short Japanese yen positions held during the second
quarter produced profits as the yen?s value declined during May
and June in response to weak Japanese economic data.  During
<page> July, gains resulted after the U.S. dollar?s value
strengthened against the yen on significant interest rate
differentials between the U.S. and Japan.  Market participants
also drove the U.S. dollar higher against the yen during July
amid beliefs that U.S. interest rates would increase further, the
release of strong U.S. economic data, and news that the U.S.
Current-Account deficit had narrowed.  During September, short
Japanese yen positions achieved gains after the yen?s value
declined in the wake of weak Japanese economic data, including
industrial production, salaried household spending, and the Tokyo
consumer price index.

For the Three and Nine Months Ended September 30, 2004
The Partnership recorded total trading results including
interest income totaling $(19,847,451) and expenses totaling
$3,549,722, resulting in a net loss of $23,397,173 for the three
months ended September 30, 2004.  The Partnership?s net asset
value per Unit decreased from $12.93 at June 30, 2004 to $11.58
at September 30, 2004.

The most significant trading losses of approximately 2.8%
resulted from both long and short positions in the euro versus
the U.S. dollar during August as the euro experienced significant
short-term volatility due to conflicting economic data out of
Europe and the U.S., and volatile energy prices throughout a
<page> majority of the month.  Losses of approximately 2.0% were
recorded from short positions in the Japanese yen versus the U.S.
dollar during August as the U.S. dollar?s value declined under
pressure from concerns for the rate of U.S. economic growth, soft
economic data, and record-high oil prices.  During September,
short Japanese yen positions against the U.S. dollar provided
further losses as the U.S. dollar?s value weakened due to rising
oil prices that fueled fears of sluggish economic growth in the
U.S. Additional losses of approximately 1.6% and 1.4%,
respectively, were incurred from long positions in the South
African rand and Australian dollar versus the U.S. dollar during
July as the U.S. dollar reversed higher in response to upbeat
market sentiment and a jump in July consumer confidence data.
During August, long South African rand positions experienced
further losses as its value moved lower against the U.S. dollar
due to a reduction in South African interest rates by the Reserve
Bank of South Africa. Further Partnership losses of approximately
1.0% resulted from long positions in the British pound versus the
U.S. dollar during July and short British pound positions during
September.  Finally, losses of approximately 0.9% stemmed from
short positions in the Swiss franc versus the U.S. dollar during
August and September due to a declining U.S. dollar and rising
oil prices.

The Partnership recorded total trading results including
interest income totaling $(53,000,803) and expenses totaling
<page> $10,680,859, resulting in a net loss of $63,681,662 for
the nine months ended September 30, 2004. The Partnership?s net
asset value per Unit decreased from $15.66 at December 31, 2003
to $11.58 at September 30, 2004.

The most significant trading losses of approximately 7.8% and
2.2%, respectively, were recorded from positions in the Japanese
yen and Singapore dollar versus the U.S. dollar.  Short Asian
currency positions against the U.S. dollar during March recorded
losses as the Japanese yen reversed higher due to speculation
that the Bank of Japan was relaxing its efforts to weaken the
yen.  After reversing to long positions in the Asian currencies
versus the U.S. dollar during April, the U.S. dollar surged
upwards against most currencies following the release of
stronger-than-expected U.S. jobs data, thereby, causing losses.
The Japanese yen also came under pressure following efforts by
the Japanese government to weaken the yen by intervening in the
currency markets.  Short Asian currency positions against the
U.S. dollar incurred losses during May as the U.S. dollar?s value
declined in response to fears of potential terrorist attacks,
expanding energy prices, and the release of weaker-than-expected
U.S. economic data.  During June, short Asian currency positions
experienced losses again due to the Japanese yen?s rise prompted
by better-than-anticipated improvements in Japanese economic
data.  The Japanese yen continued its rise later in the month in
response to speculation that the Bank of Japan would move to
<page> raise interest rates amid further confirmation that
Japan's economic recovery was on track.  During August and
September, short Japanese yen positions experienced losses as the
U.S. dollar?s value declined under pressure from concerns for the
rate of U.S. economic growth, soft economic data, and record-high
oil prices.  Additional Partnership losses of approximately 5.8%
and 1.9%, respectively, stemmed from positions in the South
African rand and Australian dollar versus the U.S. dollar.
During January and February, long South African rand positions
declined amid expectations for weaker gold prices caused by
improvements in the global economy during 2004.  During April,
long South African rand positions versus the U.S. dollar
experienced losses as the U.S. dollar?s value moved higher versus
these, and most other, currencies.  During May, short South
African rand positions incurred losses as the commodity-linked
currency reversed higher in response to rising gold prices.
During July, the U.S. dollar?s upward reversal caused by upbeat
market sentiment and positive consumer confidence data caused
losses for long positions in the South African rand and
Australian dollar.  During August, long South African rand
positions experienced further losses as its value moved lower
against the U.S. dollar due to a reduction in interest rates by
the Reserve Bank of South Africa.  Long positions in the
Norwegian krone versus the U.S. dollar incurred losses of
approximately 3.2% as the value of the U.S. dollar temporarily
moved higher in response to a decline in U.S. unemployment <page>
claims.  Losses of approximately 3.0% were incurred primarily
during the third quarter from both long and short positions in
the euro versus the U.S. dollar as the euro experienced
significant volatility due to conflicting economic data out of
Europe and the U.S. combined with volatile energy prices
throughout the quarter. Finally, Partnership losses of
approximately 1.9% were experienced from short positions in the
Mexican peso versus the U.S. dollar, primarily during the first
quarter, as the Mexican peso reversed higher in response to
encouraging signs of a recovery in the Mexican economy.


<page> 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
requirements equal to the net unrealized loss on open contracts
in the Partnership accounts with the counterparty, which is
<page> 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 the ?Partnership?s Value at Risk in Different Market
Sectors? <page> 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
simulation (with a confidence level of 99%) which involves <page>
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 revalues 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.
<page>
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 September 30, 2005 and 2004.
At September 30, 2005 and 2004, the Partnership?s total
capitalization was approximately $224 million and $210 million,
respectively.

Primary Market		September 30, 2005	   September 30, 2004
Risk Category		   Value at Risk		Value at Risk
Currency				  (2.68)%			    (1.55)%

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
<page> 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 October 1, 2004 through September 30, 2005.

Primary Market Risk Category        High      Low      Average
Currency   					(3.97)%	(2.68)%	 (3.38)%

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 September 30, 2005, and for
the four quarter-end reporting periods from October 1, 2004
through September 30, 2005.  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 September 30, 2005.
The Partnership also maintains a substantial portion of its
available assets in cash at Morgan Stanley DW; as of September
30, 2005, 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 ?
constitute forward-looking statements within the meaning of
Section 27A of the Securities Act and Section 21E of the <page>
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 September 30, 2005.  It may be anticipated,
however, that market exposure will vary materially over time.

Currency.  At September 30, 2005, the Partnership had market
exposure in the currency sector.  The Partnership?s currency
exposure 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
<page> influence these fluctuations.  At September 30, 2005, 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 September 30, 2005, 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> PART II.  OTHER INFORMATION

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

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

Units sold through 9/30/05	      25,265,247.603
Units unsold through 9/30/05    26,734,752.397


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 September 30, 2005
was $333,102,407.

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.

<page>
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)

November 14, 2005       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.
















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