Currency factor


 

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Currency factor

The portion of a rate of return that is due to the currency in which the asset is denominated. The currency factor can be nonzero either because of currency risk or because of expected appreciation or depreciation.



Similar Matches

Currency Board

Currency Board

Entity charged with maintaining the value of a local currency with respect to some other specified currency.


Currency depreciation

Currency depreciation

See depreciation.


Currency conversion

Currency conversion

A term used by the London Stock Exchange to denote that a trade was executed in one currency but converted for trade reporting.


Currency diversification

Currency diversification

Using more than one currency as an investing or financing strategy. Exposure to a diversified currency portfolio typically entails less exchange rate risk than if all the portfolio exposure were in a single foreign currency.


Currency swings

Currency swings

These affect foreign currency mortgages. In pound sterling terms, the value of the capital outstanding on your mortgage can rise or fall dramatically if there is movement in the value of either the currency of the loan or UK pounds sterling. If the value of the pound increases, you should benefit from lower repayments, as the value of the foreign currency you have borrowed decreases. Less sterling is required to buy the same amount of foreign currency necessary to meet the repayments and vice versa.


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Composite currency


 
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