Investment funds managed by Citigroup moved away from U.S. dollars following Friday’s Supreme Court decision that overturned President Donald Trump’s extensive tariff program, according to internal bank communications obtained by Reuters on Monday.
The American currency experienced significant fluctuations and declined on Friday after the nation’s highest court rejected the tariffs that were implemented under national emergency legislation.
Kristjan Kasikov, who leads Citi FX Quant Investor Solutions globally, wrote in the internal memo that hedge fund clients became net sellers of U.S. currency both during and following the court’s tariff decision. He noted that the Australian dollar emerged as the most popular purchase among major international currencies.
Kasikov further observed that currencies from developing nations, especially those in Asian and Latin American markets, also attracted investment capital.
The bank indicated that trading activity remained consistent with historical patterns, largely because financial markets had anticipated the Supreme Court’s ruling outcome.
Despite Friday’s currency movements, Citigroup’s internal tracking system still shows moderate bullish positions on the dollar, supported by continued investment from both hedge funds and traditional money managers.
In financial terms, a bullish or long position represents an investor’s expectation that an asset’s value will increase over time.
