Citigroup downward United States dollar projections: Federal Reserve doves are expected to repurchase their national debt and press on the United States dollar

On 21 August, Citigroup foreign exchange strategists turned to short-term trends in the United States dollar, as markets were preparing for more dove-like Feds, mid-term elections in the United States and further expansion of the United States Treasury's buy-back. The Citi strategist team, led by Daniel Tobon, indicated that the United States dollar index forecast for the next three months had been reduced from 102.12 to 98.34. Citi had previously noted that the recent initiative by United States Treasury Secretary Becent to reduce long-term borrowing costs by scaling up the buy-back of United States Treasury bonds for 10 to 30 years could cost the dollar. The United States dollar index, after falling to its lowest level since May on Wednesday, remained almost at 98.9 on Thursday. The Citigroup indicated that its views on the United States dollar had been “more neutral” in recent months, but warned of an increased risk to the United States dollar in the coming months。