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Currency hedge |
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Currency hedgeApplies mainly to international equities. Hedging technique to guard against foreign exchange fluctuations (i.e., short Euro l00 mm when holding a long position of Euro l00 mm in stocks).Currency hedge Similar MatchesStrong CurrencyStrong CurrencyA currency whose value compared to other currencies is improving, as indicated by a decrease in the direct exchange rates for the currency. Currency revaluationCurrency revaluationA deliberate upward adjustment in the official exchange rate established, or pegged, by government against a specified standard, such as another currency or gold. Currency overvaluationCurrency overvaluationApplies mainly to international equities: (1) consideration that a currency is overvalued if private demand for the currency at the going exchange rate is less than total private supply (i.e., central banks are buying up the difference, supporting the value of the currency through foreign exchange intervention); (2) currency value exceeding purchasing power parity. Currency put optionCurrency put optionContract that gives the holder the right to sell a particular currency at a specified price (exchange rate) within a specified period of time. Common currencyCommon currencyA currency that is shared by more than one country. Thus the currency of a currency area. Further SuggestionsForeign currency translationcurrency Currency in circulation Over-valued currency Foreign currency forward contract Currency swings Currency bloc Currency union Base currency Soft currency Currency appreciation Net currency exposure Currency option Intervention currency currency conversion Canonical model of currency crises European Currency Unit (ECU) Currency selection Foreign currency futures contract Eurocurrency deposit Under-valued currency Currency swap Multicurrency loans Currency devaluation Virtual currency option |
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