Currency strategists at Citigroup Inc. turned bearish on the US dollar in the near term, as markets gear up for a less hawkish Federal Reserve, midterm elections and more debt buybacks from the US Treasury.

The shift in stance reflects growing concerns that increased Treasury issuance could weigh on the greenback, particularly if foreign demand fails to keep pace with supply.

Analysts noted that the confluence of monetary policy normalization, political uncertainty and fiscal dynamics creates a challenging environment for the dollar. They expect near-term downside pressure across major currency pairs involving the buck.

Citi's updated forecast aligns with broader market sentiment, as investors await clearer signals from the Fed following its upcoming policy meetings and the November midterms.