Citi Sees Dollar Plunging Amid Fed Rate Cut Expectations

Currency strategists at Citigroup Inc. have turned bearish on the US dollar in the near term, citing factors such as a less hawkish Federal Reserve and increased debt buybacks from the US Treasury.

The team lowered its forecast for the US Dollar Index to 98.34 in the next three months, down from an earlier prediction of 102.12.

This revised forecast is a result of market expectations shifting towards a less aggressive monetary policy by the Federal Reserve, as well as upcoming midterm elections and more debt buybacks from the Treasury.