US Stocks: Citigroup's hedge fund clients sold US dollar around Supreme Court tariff ruling

Citigroup's hedge fund clients sold ​the dollar ​around Friday's U.S. Supreme Court ruling ​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 volatile trading on Friday ​after the Supreme Court struck down the tariffs based ​on a national emergency law.

"Citi's hedge fund clients were net USD (dollar) sellers around and ​after the tariff ruling," ⁠Kristjan Kasikov, ‌global head of Citi FX ​Quant ​Investor Solutions, said in the ⁠note, adding the Australian dollar was the ​most bought currency among major currency ​pairs.

"Emerging markets currencies, particularly in Asia and Latin America also saw some inflows," Kasikov added.


Citi noted that, given that the Supreme Court ruling outcome had ‌been 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 currency positioning indicator pointed to moderate ​long dollar positions, driven by hedge-fund and real-money client flows.

A long position is a bet that an asset will rise in value.