Hedge fund clients of Citigroup sold the US dollar around last week’s US Supreme Court ruling that struck down President Donald Trump’s sweeping tariff measures, according to a report by Reuters citing a note from the bank.
The dollar weakened in volatile trading on Friday after the US Supreme Court ruled that the tariffs could not be justified under national emergency legislation. Citi said hedge fund clients were net sellers of the greenback both around and following the decision.
Kristjan Kasikov, Citi’s global head of FX Quant Investor Solutions, said the Australian dollar was the most purchased currency among major pairs during the period. He added that emerging market currencies, particularly across Asia and Latin America, also attracted inflows.
Citi noted that trading volumes were broadly in line with historical norms, reflecting the fact that the court’s decision had largely been anticipated by the market. Despite the post-ruling move, the bank’s currency positioning indicators continue to show moderate long US dollar exposure, driven by hedge fund and real-money client positioning.
