Citigroup predicts dollar weakness following US talks with trading partners

Citigroup Inc. strategists, led by Osamu Takashima, predict a possible weakening of the US dollar following the upcoming G7 summit. During the meeting, world leaders plan to discuss currency policy as part of trade negotiations with the United States.

Citigroup analysts believe the Trump administration will not actively seek to devalue the national currency. However, the dollar may decline as a result of reaching trade agreements with partner countries that include reductions in customs duties. Bloomberg reports that currency policy has become a key topic of the upcoming negotiations following statements from representatives of South Korea and Taiwan regarding consultations with the US side.

The bank’s strategists highlight significant risks of the dollar’s decline, particularly given the Bloomberg Dollar Spot Index has already decreased by 4% since April. This weakening of the greenback has been a direct consequence of US trade policy, which has negatively impacted the dollar.