LONDON, Feb 24 (Reuters) – Citigroup hedge fund clients sold off the dollar around Friday’s ruling by the U.S. Supreme Court on President Donald Trump’s sweeping tariffs, according to a note from the U.S. bank shared with Reuters late on Monday.
The dollar fell in a volatile session on Friday after the Supreme Court struck down the tariffs based on a national emergency law.
“Citi hedge fund clients were net sellers of US dollars around and after the tariff decision,” Kristjan Kasikov, global head of Citi FX Quant Investor Solutions, said in the note, adding that the Australian dollar was the most bought currency among major currency pairs.
“Emerging market currencies, particularly in Asia and Latin America, also saw some inflows,” Kasikov added.
Citi noted that since the outcome of the Supreme Court ruling was “expected,” the trading volumes it saw were broadly in line with past trading activity.
The note added that even “after Friday’s dollar move, Citi’s FX Positioning Indicator pointed to moderate long dollar positions, driven by flows from hedge funds and real money clients.
A long position is a bet that an asset will increase in value.
(Reporting by Dhara Ranasinghe; Editing by Amanda Cooper)