Foreign exchange rate risk, or currency risk, could potentially happen when the value of one currency fluctuates relative to ...
When prices creep upward, each unit of currency you hold loses purchasing power. If your investments don’t at least keep pace with inflation, you’re effectively losing ground. That’s why many ...
Some investment professionals encourage using foreign stocks and bonds to diversify portfolios. Since overseas assets often don't track their U.S. counterparts closely, a globally diversified ...
It can be tempting for investors to focus on specific assets or strategies when building an investment portfolio, but those taking a long-term approach will want to diversify in order to balance out ...
The greenback is taking a beating. Rather than hold strong or appreciate against other currencies, the US dollar has been losing ground this year next to other major currencies, such as the euro. The ...
Rising fears about the outlook for the dollar may make it more compelling to hedge currency exposure. This is not just a theory: investors are increasing hedges on their US holdings. To recap, forward ...
Two Taiwanese life insurers are taking opposite approaches to foreign-exchange hedging after a surge in the island’s currency put hundreds of billions of dollars of their US bond holdings under ...
While the US dollar was continually getting stronger and sterling was continually getting weaker, British investors rarely needed to worry too much about currency movements. If you held an ...