Citigroup's FX strategists, led by Daniel Toban, turned short-term bearish on the US dollar, citing markets pricing a more dovish Fed, US midterm election risk and the US Treasury's expansion of repo operations in 10–30yr securities. The team cut its 3-month dollar-index forecast to 98.34 from 102.12. Citi noted Treasury Secretary Bessent's move to expand long‑term Treasury repo as a potential drag on the dollar; the dollar index hit its weakest level since May on Wednesday and traded around 98.

Citigroup's FX strategists, led by Daniel Toban, turned short-term bearish on the US dollar, citing markets pricing a more dovish Fed, US midterm election risk and the US Treasury's expansion of repo operations in 10–30yr securities. The team cut its 3-month dollar-index forecast to 98.34 from 102.12. Citi noted Treasury Secretary Bessent's move to expand long‑term Treasury repo as a potential drag on the dollar; the dollar index hit its weakest level since May on Wednesday and traded around 98.9 on Thursday, and the team said downside risks to the dollar have increased after a recent neutral stance.