Goldman Exits Losing Trade on Dollar Drop Against a Basket of Currencies

Goldman Sachs Group Inc. (GS) said it exited a money losing bet that the dollar would weaken against a basket of currencies after turmoil in European markets and broader risk aversion added to the greenback’s refuge appeal.

The trade was “stopped out” after a loss of 2.3 percent, the New York-based securities firm said in a note today. On Aug. 10, Goldman recommended betting against the dollar with a basket of currencies comprised of the New Zealand dollar, Russian ruble, Swedish krona, South Korean won, Malaysian ringgit and Chilean peso.

To contact the reporter on this story: Dave Liedtka in New York at dliedtka@bloomberg.net

To contact the editor responsible for this story: Greg Storey at gstorey@bloomberg.net

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