Stephan Roach, a former Morgan Stanley Asia chairman, has predicted the U.S. dollar to drop by 35 percent against other major currencies due to ballooning fiscal deficit and the country's decoupling strategy.

In an interview with CNBC, Roach, now a senior fellow at Yale University, warned that a dollar crash is virtually inevitable, describing a changing global landscape paired with a massive U.S. budget deficit a lethal combination for the dollar.

The roots of the predicted dollar crash run deep, with a very low domestic savings rate and a chronic current account deficit creating significant imbalances for a long time, according to Roach.

The economic turmoil caused by coronavirus outbreak will exacerbate the problem with the national savings rate moving towards a deeper negative end and the fiscal deficit blow out in the coming years, since the country rolled out the biggest stimulus package during the pandemic.

Roach also said that America's strategy of decoupling itself from the rest of the world and withdrawal from globalization is also an important force that could cause the U.S. dollar to crash, combined with a skyrocketing fiscal deficit. "That's a lethal combination," said Roach.

Roach predicted that the crash can be expected over the next year or two, maybe more, but virtually inevitable.