Almost six months after Goldman Sachs Group Inc. recommended shorting the dollar, it’s calling it quits on the trade.
In a note titled “tactical retreat,” Goldman’s currency team closed its recommended short greenback position against a basket of Group-of-10 commodity currencies, including the Australian and New Zealand dollars. The firm joins hedge funds and other investors capitulating on bearish dollar bets after surging Treasury yields triggered a rebound in the U.S. currency, capsizing one of the world’s most crowded macro trades.
“Although we still expect these currencies to appreciate versus the dollar over the coming quarters, firm U.S. growth and rising bond yields may keep the greenback supported over the short-term,” strategists including Zach Pandl wrote in a note Friday. “After a choppy few months we are closing our recommended dollar short trade.”
What was a near-consensus call at the…