Citigroup hedge fund clients sold the dollar following Supreme Court tariff ruling
Citi hedge fund clients sold the dollar last Friday after a court ruling struck down tariffs. Investors moved into the Australian dollar and emerging markets.
Insights:
Citigroup Inc. reported on February 24, 2026, that its hedge fund clients were net sellers of the dollar in the United States 
US around the time the U.S. Supreme Court struck down tariffs previously established by President Donald Trump. The court ruled against the tariffs, which had been justified under a national emergency law, leading to a notable shift in the FX market.
US around the time the U.S. Supreme Court struck down tariffs previously established by President Donald Trump. The court ruled against the tariffs, which had been justified under a national emergency law, leading to a notable shift in the FX market.The bank noted that these flows coincided with increased inflows into the Australian dollar in Australia 
AU and several currencies in emerging markets (Asia and Latin America). This activity was significant enough to move the currency positioning indicator at Citigroup, as hedge funds and real-money investors adjusted their exposure in response to the legal development.
AU and several currencies in emerging markets (Asia and Latin America). This activity was significant enough to move the currency positioning indicator at Citigroup, as hedge funds and real-money investors adjusted their exposure in response to the legal development.
