BlockBeats News, August 21, Citigroup's currency strategist has recently turned bearish on the US dollar, citing the market's preparation for a less hawkish Fed, midterm elections, and the US Treasury's expanded debt buybacks.

Lead by Daniel Tobon, Citigroup strategists wrote in a research report on Thursday that the team has lowered their three-month US Dollar Index forecast from 102.12 to 98.34.

This shift comes after the bank issued a warning: US Treasury Secretary Scott Besent's latest move to expand the size of 10 to 30-year bond buybacks to lower long-term borrowing costs could come at the expense of a weaker dollar. The day before, the dollar index fell to its lowest level since May, then stabilized around 98.9.

Tobon and his team stated that their stance on the dollar has been "more neutral" in recent months, and warned that risks could rise in the coming months.