Citigroup Inc. strategists recommend emerging-market investors seek trades cushioning against a potential rebound in the dollar, in contrast with Wall Street peers that expect more weakness for the US currency.
While assets in developing countries have had a stellar year so far, strategists at Citi including Luis Costa argue that the trends driving dollar weakness already started shifting around the middle of 2025. Focus has moved on to the boom in artificial intelligence and lack of strong evidence for a global trade collapse following higher US tariffs, Citi said.