Currency risk management can enhance the stability and return of international investments. Effective strategies include hedging against exchange risk as well as diversifying across regions and currencies. Currency risk (commonly referred to as Foreign Exchange Risk or FX risk) can have a direct impact on returns from international investments. Transaction Exposure Transaction exposure refers to the risk a business takes from fluctuations in foreign exchange rates between when an international transaction begins and ends. Since most international business deals don’t happen instantaneously, it is possible that currency values could change…
Read MoreThe Role of Currency Risk in International Investing
