Xin Lang Cai Jing·2026-02-24 14:05Core Viewpoint - The report indicates that hedge fund clients of Citigroup sold off the US dollar before and after the Supreme Court's ruling on President Trump's tariff policies, leading to fluctuations in the dollar's value [1][8]. Group 1: Market Reactions - Following the Supreme Court's rejection of the tariff measures, the dollar experienced a decline during volatile trading [2][9]. - Kristjan Kasikov, global head of Citigroup's foreign exchange quantitative investor solutions, noted that hedge fund clients were net sellers of the dollar around the time of the ruling [2][9]. - The Australian dollar was identified as the most purchased currency among major pairs during this period [2][9]. Group 2: Emerging Markets and Currency Positions - There was observed inflow into emerging market currencies, particularly from Asia and Latin America [3][10]. - Citigroup reported that the trading volume observed was consistent with past trading activities, given that the Supreme Court's decision was largely anticipated [3][10]. - Despite the fluctuations in the dollar, Citigroup's currency position indicators still pointed towards a moderate bullish stance on the dollar, driven mainly by hedge funds and real money clients [3][10]. Group 3: Future Outlook - On Tuesday before the US market opened, the dollar regained much of its losses following the Supreme Court's ruling [5][11]. - Michael Pfister from Commerzbank stated that the initial weakness of the dollar, possibly due to fiscal concerns, had dissipated after Trump quickly implemented new tariffs [6][13]. - Trump signed an executive order shortly after the court ruling, with a 10% tariff taking effect on Tuesday, and he threatened to raise tariffs to 15%, although no formal directive has been issued yet [6][13].