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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 MatchesConvertible currencyConvertible currencyA currency that can legally be exchanged for another or for gold. In times of crisis, governments sometimes restrict such exchange, giving rise to black market exchange rates. Currency Exchange RiskCurrency Exchange RiskUncertainty about the rate at which revenues or costs denominated in one currency can be converted into another currency. Currency depreciationCurrency depreciationA decline in the value of one currency relative to another currency. Depreciation occurs when, because of a change in exchange rates, a unit of one currency buys fewer units of another currency. Currency appreciationCurrency appreciationAn increase in the value of one currency relative to another currency. Appreciation occurs when, because of a change in exchange rates, a unit of one currency buys more units of another currency. Reporting currencyReporting currencyThe currency in which the parent firm prepares its own financial statements; that is, US dollars for a US company. Further SuggestionsCurrency boardHard currency Net currency exposure Currency union Comptroller of the Currency currency swap Currency put option Soft currency European Currency Unit Currency risk Currency no longer issued Currency risk sharing Strong Currency Foreign currency translation currency Currency devaluation Foreign currency option Eurocurrency deposit Currency Foreign currency forward contract Currency crisis Eurocurrency Currency diversification European Currency Unit (ECU) Intervention currency |
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