According to a Bank of America report obtained by foreign media, Citigroup's hedge fund clients sold off the U.S. dollar around the time of last Friday's U.S. Supreme Court ruling on former President Trump's broad tariff policies.

Last Friday, the dollar declined in volatile trading after the Supreme Court rejected the tariff measures under the National Emergencies Act.

Kristjan Kasikov, Global Head of Citigroup's Foreign Exchange Quantitative Investor Solutions, stated in the report, "Citigroup’s hedge fund clients were net sellers of the dollar around the time of the tariff ruling." He added that the Australian dollar was the most purchased currency among major pairs.

Kasikov further noted, "Emerging market currencies, particularly those from Asia and Latin America, also saw some inflows."

Citigroup indicated that, given the Supreme Court's decision was widely anticipated, the trading volume observed was broadly in line with past activity.

The report also mentioned that even after last Friday's volatility in the dollar, Citigroup's currency positioning metrics still pointed to a modest long dollar position, primarily driven by flows from hedge funds and real money clients.

On Tuesday, before the U.S. market opened, the dollar rose, recovering most of the losses incurred after the Supreme Court overturned much of Trump's tariff policy.

Michael Pfister of Commerzbank noted in a separate report that the dollar's initial weakness, possibly driven by fiscal concerns, had faded after Trump quickly implemented new tariffs. He stated, "However, uncertainty is likely to remain high."

A 10% tariff took effect on Tuesday after Trump signed an executive order shortly after the court ruling. He has since threatened to raise tariffs to 15%, but no formal directive has been issued to implement the increase.