Goldman Sachs has closed a short position on the Thai baht against the Indian rupee, netting a modest gain, sources familiar with the matter said.
The trade, which involved betting against the strength of the Thai baht relative to the Indian rupee, was unwound after a period of limited price movement in the currency pair. While the exact duration of the position was not disclosed, the exit generated a small profit for the bank, the sources added.
Short positions in currency pairs are typically used to capitalize on expected depreciation of one currency relative to another. In this case, the strategy relied on the Thai baht weakening against the Indian rupee, though market conditions did not produce significant price swings in either direction.
Goldman Sachs declined to comment on the specifics of the trade or its performance.
