Definitions for "currency risk"
Related Terms:
Exchange risk, Foreign exchange risk, Exchange rate risk, Currency hedging, Transaction exposure, Reference currency, Base currency, Peg, Cross rate, Devaluation, Exchange rates, Dollar rate, Revaluation, Hard currency, Exchange rate, Exposure, Cross rates, Floating exchange rates, Soft currency, Fixed exchange rate, Quanto option, Cross-rate, Currency converter, European terms, Market risk, Strong dollar, Economic exposure, Effective exchange rate, Usd, Flexible exchange rate, Currency board, Swap , Currency pair, Foreign exchange rate, Rate of exchange, Direct quote, Floating exchange rate, Asset swap, Translation exposure, Convertibility, Equity swap, Agio, Herstatt risk, Swaps, Foreign exchange market, Risk premium, Investment risk, Dirty float, Managed float
The risk that a business operations or an investments value will be affected...
An international investor's total returns can be significantly affected by the exchange rate between their home/reference currency and the currency in which foreign assets they have invested in are denominated. A depreciation of the home currency relative to the investment currency will see an increase in investment returns. However, an appreciation of the home currency relative to the investment currency will see a decrease in investment returns. This is known as currency risk.
The possibility that returns could be reduced for Americans investing in foreign securities because of a rise in the value of the U.S. dollar against foreign currencies. Also called exchange rate risk.
The risk of adverse fluctuations in the relative value of one currency to another.
For many businesses, it is the movement of forex rates which may erode profits from foreign sources denominated in foreign currency.
Changes in the exchange rate between the currency that an investment is purchased in and the Canadian dollar affect the value of the investment.
The risk that the value of an investment will be influenced by changes in exchange rates.
The risk that a currency will lose value, which may cause you to lose money on an investment. (This risk is generally associated with investments in the stocks or bonds of companies or governments outside the U.S.)
Price risk relating to exchange rates fluctuations. . Derivatives Financial instruments whose value is derived from the price of one or several underlying assets (e.g. currencies, securities, indexes, etc). . Economic profit Net profit after tax less risk-adjusted cost of capital. . Forward exchange contract Contract where the buyer purchased currency at a predetermined exchange rate on a fixed date.
The potential for a shift in exchange rates, which would be detrimental to your position.
Investments traded in foreign markets or which pay interest or dividends in foreign currencies entail the risk of declines in the currency's value relative to the U.S. dollar. Some investment managers attempt to manage this risk with various hedging techniques. These are not consistently effective, but diversification into many major currencies can help limit this risk.
The risk that an investment transacted in a foreign currency will lose value due to fluctuations in the rate of exchange between the foreign currency and the U.S. dollar.
The risk of adverse movements in foreign currency cross exchange rates that reduce the domestic currency value of international reserves. Currency risk also arises with an appreciation of the domestic currency.
A market risk — The risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates.
The risk t a fluctuation in exchange rates between currencies will negatively affect the return on any foreign securities you own. The standard rule of thumb is t, when the dollar appreciates, or grows stronger, against a foreign currency, the return on an investment in t currency will be reduced. The foreign currency will now translate into fewer of the stronger dollars. Conversely, when the dollar depreciates, or loses value, against a foreign currency, the return on an investment in t currency will be greater.
When the manager buys investments in currencies other than Sterling there is a risk that the value of those investments will change due to changes in currency exchange rates.
The risk of incurring losses resulting from an adverse change in exchange rates.
Risk of incurring losses in relation to the value of overseas investments as a result of movements in international exchange rates.
The risk that an investment`s value will be affected by variations in exchange rates. iscount — The difference between the face value of a security and the amount paid for it.
The potential for price fluctuations in the dollar value of international stocks due to changing currency exchange rates.
The potential loss that could be incurred from an adverse change in exchange rates.
The possibility of an unfavorable change in exchange rates.
The risk that fluctuations in the exchange rate between the U.S. dollar and a foreign currency may decrease the value of a security that is either invested in, or whose value is derived upon that currency. Global and international investments are most subject to this type of risk.
Currency risk; risk of loss due to movements in currency rates.
The risk that an investment in a foreign country will rise or fall based on the value of its currency.
The chance that foreign securities, denominated in foreign currencies, could decline in value in terms of U.S. Dollars if the dollar should rise in value against those other currencies.
Related: Exchange rate risk
The risk associated with drastic changes/fluctuations in exchange rates in which a large loss maybe incurred.
(Risque de devise) Potential gain or loss on the value of a security or portfolio, linked to upward or downward fluctuations in the value of the currency in which the security is denominated.
the probability of an adverse change in exchange rates. D to G GO TO TOP
The risk involved in transactions where more than one currency is involved. For example, a movement in international exchange rates may change the cost of buying an asset before the purchase is completed.
The risk a seller takes when he agrees to be paid in foreign currency.
This refers to the possibility that the domestic currency will appreciate relative to the foreign currency in which investments are denominated and a loss will be incurred on exchange back into the domestic currency.
the probability of an adverse change in exchange rates. Top of the page
is the risk of financial loss arising from fluctuations in exchange rates.
the likelihood of an adverse change in exchange rates.
A factor in international investments, this is the possibility that changing currency rates will affect the dollar value of overseas investments.
The possibility that an investment's value could be affected by movements in exchange rates.
The probability of an adverse change in exchange rates. PAGE TOP D - G Day Trading Refers to positions which are opened and closed on the same trading day.
The risk one currency holder must bear once there is drastic fluctuation in exchange rates.
the probability of an adverse change in exchange rates. Day Trader - Speculators who take positions in commodities which are then liquidated prior to the close of the same trading day.
The risk that shifts in foreign exchange rates may undermine the dollar or any other foreign currency value of overseas investments.
The risk that fluctuations or volatility in exchange rates will affect business or investment results.
The risk that changes in a currency's value may affect the value of financial instruments or other business assets or liabilities
The risk that international exchange rates will lead to losses being incurred in overseas investments.
Currency risk is a form of risk that arises from the change in price of one currency against another. Whenever investors or companies have assets or business operations across national borders, they face currency risk if their positions are not hedged.