As the market prepared for the hawkish position of the Federal Reserve to weaken, the US midterm elections, and the US Treasury's expansion of treasury bond repurchases, Citigroup foreign exchange strategists turned bearish in the short term. Citibank strategist Daniel Tobon and others wrote in a research report on Thursday that the team lowered the dollar index forecast for the next three months from 102.12 to 98.34. Earlier, Citi warned that US Treasury Secretary Scott Bessent is trying to reduce long-term borrowing costs by expanding the repurchase scale of 10-30 year treasury bonds. This move could cost the dollar. The US dollar index was reported at 98.9 and was basically flat. The day before, it had fallen to its lowest level since May. Tobon and others said they have maintained a “more neutral” view of the US dollar over the past few months, warning that risks may rise in the next few months.

As the market prepared for the hawkish position of the Federal Reserve to weaken, the US midterm elections, and the US Treasury's expansion of treasury bond repurchases, Citigroup foreign exchange strategists turned bearish in the short term. Citibank strategist Daniel Tobon and others wrote in a research report on Thursday that the team lowered the dollar index forecast for the next three months from 102.12 to 98.34. Earlier, Citi warned that US Treasury Secretary Scott Bessent is trying to reduce long-term borrowing costs by expanding the repurchase scale of 10-30 year treasury bonds. This move could cost the dollar. The US dollar index was reported at 98.9 and was basically flat. The day before, it had fallen to its lowest level since May. Tobon and others said they have maintained a “more neutral” view of the US dollar over the past few months, warning that risks may rise in the next few months.