Citi Sees Weaker Dollar After G-7 Meeting as US Softens Tariffs
(Bloomberg) -- Citigroup Inc. said the dollar could fall further after this week's Group-of-Seven meeting as global leaders discuss currency policies as part of their trade negotiations with the US.
America, 'Nation of Porches'
NJ Transit Train Engineers Strike, Disrupting Travel to NYC
NJ Transit Makes Deal With Engineers, Ending Three-Day Strike
NYC Commuters Brace for Chaos as NJ Transit Strike Looms
The bank's currency strategists led by Osamu Takashima wrote in a note that Washington is unlikely to 'aggressively pursue' a weak dollar, but the greenback will end up declining as the nation reaches agreements with its trading partners to lower tariffs.
Currency policy has become a focal point ahead of the G-7 meetings that start on Tuesday after South Korea and Taiwan officials suggested they have been discussing the theme with the US. Japan's Finance Minister said earlier on Tuesday he's arranging a bilateral meeting with US Treasury Secretary Scott Bessent this week to discuss topics including currency matters.
'We suspect that currency appreciation is likely to be requested as part of negotiations to lower tariffs,' Citi strategists wrote, adding that Japan and China, as well as other East Asian nations, could be targeted. 'We suspect that behind the scenes the Bank of Japan's monetary policy is being discussed in US-Japan trade negotiations.'
Rather than trying to seek a broad 1985 Plaza Accord-like deal to weaken the dollar, Citi expects Bessent to emphasize the role of central banks on currencies. He's also seen focusing on the effect that investment policies for foreign currency reserves have on US interest rates, they said.
'We do see the headline risk as biased toward US dollar depreciation,' the strategists said. 'The US would have less incentive to maintain a strong US dollar policy' as high tariffs are reversed, they added.
The Bloomberg Dollar Spot Index is down 4% since early April, when the US unveiled high tariffs and sent global markets into a tailspin. Since then, a chaotic roll-out and uncertainty about the permanence of the tariffs has raised questions about US policies, damaging sentiment on the currency and other US assets.
Why Apple Still Hasn't Cracked AI
Anthropic Is Trying to Win the AI Race Without Losing Its Soul
Microsoft's CEO on How AI Will Remake Every Company, Including His
Cartoon Network's Last Gasp
DeepSeek's 'Tech Madman' Founder Is Threatening US Dominance in AI Race
©2025 Bloomberg L.P.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
17 minutes ago
- Yahoo
Citigroup to axe around 3,500 tech roles in China
Citigroup is trimming its workforce size by approximately 3,500 at two of its technology centres in China, reported Reuters. The aim is to consolidate and streamline the bank's global technology operations to enhance its risk and data management systems. The staffing reductions will affect the China Citi Solution Centres in Shanghai and Dalian, with the bank planning to complete the process by the start of the fourth quarter of this year, the news agency said citing a statement by Citi. The jobs being cut are predominantly full-time positions, a source privy to the development disclosed. Some of the jobs from these centres would be relocated to other technology hubs within the company, although the specifics regarding the number of jobs or their destinations were not provided. This announcement follows last month's report, which indicated that Citigroup was reducing around 200 information technology contractor roles in China. In March, the bank communicated internally its strategy to decrease its reliance on IT contractors and to increase its in-house IT staff, in response to penalties imposed by regulators concerning data governance and control shortcomings. The downsizing in China is part of Citigroup's global restructuring plan, which has also seen the bank scaling back operations in the US, Indonesia, the Philippines, and Poland. The China-based service and technology unit is tasked with delivering financial technology and operations services to support Citigroup's global business operations. Citigroup is currently in the process of establishing a securities unit in China, still maintain the regional presence. Post-reduction, Citigroup's staff count in China is expected to be around 2,000, which includes several hundred employees within the technology division. Citi Japan, Asia North and Australia banking head Marc Luet was quoted by Reuters as saying: "Citi continues to pursue the establishment of a wholly owned securities and futures company in China." "Citigroup to axe around 3,500 tech roles in China " was originally created and published by Retail Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Bloomberg
19 minutes ago
- Bloomberg
Ukraine Keeps Rate on Hold as War, Weather Weigh on Forecast
Ukraine's central bank left its key interest rate steady for the second straight meeting as inflation is expected to ease while war-related risks weigh down the economy. The National Bank of Ukraine kept the benchmark rate at 15.5% on Thursday, it said in a statement on the website, in line with expectation from all seven economists in a Bloomberg survey. The central bank said it may extend the pause if a slowdown in inflation is threatened.
Skift
25 minutes ago
- Skift
India International Visitor Spending Hits Record High
STR reported China hotel data for the week ended May 31st. China hotel RevPAR fell 13% year-over-year, up against a tough comp of a 2% increase in the year-ago week. The decline was split somewhat evenly, with occupancy down 6.4% and ADR down 7%. The World Travel & Tourism Council said international visitor spending in India jumped to an all-time high of US$36.8 billion in 2024, up 9% over the pre-pandemic levels in 2019. India welcomes 20 million foreign tourists in 2024, surpassing 2019 figures by 2.3 million. They are projecting increases in 2025 off the record performance bolstered by increasing air connectivity, digital visa systems, and rising global interest in India's heritage and natural assets. Domestic tourism generated US$185.6 billion in 2024, up 22% from 2019 levels. The WTTC also expects that to rise in 2025, driven by younger demographics, increased disposable incomes, and a stronger post-pandemic preference for local exploration. The report indicated domestic tourists contributed nearly 84% of the total visitor spending in 2024. India's total travel and tourism GDP contribution in 2024 stood at US$249.3 billion, up 20% over 2019, about 6.6% of the national economy. Japan welcomed more than 3.9 million foreign visitors in April 2025, driven by U.S. demand and major cultural events. That is a new record, according to the Japan National Tourism Organization, and up 28.5% from April 2024. Arrivals from the United States were up 43% year-over-year, with visitors from the U.S. already topping one million in the first four months of the year. Thailand's government is on a full-court press to try to offset the negative perception and reception to their casino entertainment complexes plan. The expectation had been a quick passage so they could get them open before MGM opens their massive IR in Osaka, Japan. That has all changed. The government's press conference on the matter laid out plans for passage of the bill in 2026 (originally expected very early 2025), looking like fewer properties than before with higher budgets, opening in 2030-2031, right around the time MGM is expected to open in Japan. It also seems like they are changing their tune on the locals being allowed to gamble as the previous, very unpopular by the industry, plan to only have those with a lot of money in the bank to be allowed to gamble changed to only those on a negative list, such as self-exclusion or family exclusion being unable to enter the casino. Those areas without casinos will be viewed as potential for entertainment facilities like stadiums and cruise/yacht terminals. Next month is when lawmakers will start debating the bill, and there is still the Senate study, which is looking like it will have a negative bias, so this is definitely still not a sure thing. Hilton Tokyo announced it will redo its ballroom as part of a multi-million dollar phased renovation of event spaces to meet the growing demand from international and domestic markets. The remodel will transform the Shinjuku property's entire fourth floor, comprising a total floor space of 1,422 square meters, to create modern, tech-ready areas for flexible event experiences. This follows the completion of renovations on the third floor last year, which added 200 square meters of meeting space to the existing 1,000 square meters. This latest phase is due to be completed in October. The Kiku Ballroom will be remodeled to allow for partitioning into four sections. The hotel has 830 guest rooms and is known as a premier destination for events. IHG Hotels & Resorts has expanded its hotel management portfolio in Vietnam by signing an agreement with Nha Trang Bay JSC, a member of the GreenSpark Group. IHG will manage the voco Scenia Bay Nha Trang – By IHG, opening around the end of this year. The 250-unit property will have 28 floors, located less than an hour's drive from Cam Ranh International Airport. Amenities will include a swimming pool, restaurant, bars, and meeting facilities, and will be IHG's fourth hotel in the region. They have 20 hotels across eight brands scattered across the country. Dusit Princess Melaka, Dusit International's debut property in Malaysia, held its grand opening on May 29th. The hotel unveiled one of the largest meeting and event spaces in Melaka, further enhancing the city's appeal as a regional MICE destination. The 296-room hotel is located in the heart of the UNESCO World Heritage City. Pontiac Land Group, developer and owner of Capella Sydney, is looking for more mixed-use projects in Australia. Pontiac said they were attracted to the NSW capital due to high government spending on infrastructure, such as the metro, Australia's biggest public transport project. The 192-room Capella Sydney was opened two years ago. City Developments Ltd. agreed to sell its 50.1% stake in the South Beach mixed project in Singapore to its Malaysian partner, IOI Properties Group, for about S$834.2 million. The deal values the complex at S$2.75 billion, including the S$1.16 billion in liabilities. The project in Singapore's CBD includes retail space, a 34-story office tower, and a 45-story building housing JW Marriott Hotel Singapore. Far East Orchard Ltd. announced the termination of its joint venture agreement with Real Hospitality Group Asia Co. Ltd. The JV had been formed to establish a hospitality management business in China, but Far East said the JV had been unable to find suitable opportunities, so it was terminated. Wyndham Hotels & Resorts has expanded its presence in Eastern India with the opening of Ramada by Wyndham Ranchi Bariatu Road, marking the brand's debut in the capital of Jharkhand. The hotel is located in the premium Rameshwaram Colony on Bariatu Road and was developed by Shakambari Builders Private Limited. It has 66 rooms and a full range of modern amenities, designed to cater to both business and leisure travelers.
