Currency risk means the potential for loss on account of movement in exchange rates of Rupee against a foreign currency or on account of movement in exchange rates of one foreign currency against another or on account of movement of interest rate applicable to a foreign currency.
Currency risk means a risk of negatively changing of securities or derivatives contracts value due to changing of the currency rate of your base currency to other currencies. Foreign markets generally will involve different risks from the domestic markets. In some cases, the risks will be greater and/or additional or different to those risks of domestic markets or in domestic currency. By way of an example, investments in foreign securities may expose you to the risk of exchange rate fluctuation and when you deposit collateral denominated in one currency you may be subject to margin calls in circumstances where the obligations secured by such collateral are denominated in another currency (in addition to the risk of margin calls for fluctuations in relative values). Some currencies are not freely convertible and restrictions may be placed on the conversion and/or repatriation of funds including any profits or dividends.
Examples of Currency risk in a sentence
Currency Risk A significant portion of Cathay Pacific’s revenue is earned in foreign currency.
Through its investments in the funds above, this Investment Portfolio is subject to the following investment risks (in alphabetical order): China A-Shares Risk, Country/Regional Risk, Currency Risk, Emerging Markets Risk, Financial Risk, Foreign Investment Risk, Illiquid Investments Risk, Index Risk, Index Replicating Risk, Index Sampling Risk, Interest Rate Risk, Investment Style Risk, Issuer Risk, Large-Cap Risk, Market Risk, Mid-Cap Risk and Stock Market Risk.
Through its investments in the fund above, this Investment Portfolio is subject to the following investment risks (in alphabetical order): Call Risk, Country/Regional Risk, Credit Risk, Currency Risk and Currency Hedging Risk, Derivatives Risk, Income Risk, Index Sampling Risk, Interest Rate Risk and Non- Diversification Risk.
Through its investments in the fund above, this Investment Portfolio is subject to the following investment risks (in alphabetical order): Currency Risk, Foreign Investment Risk, Illiquid Index Risk, Investments Risk, Issuer Risk, Large-Cap Risk, Market Risk, Mid-Cap Risk and Non-Diversification Risk.
Foreign Currency Risk Investing in securities that are priced in foreign currencies involves foreign currency risk.
More Definitions of Currency risk
Currency risk. If invested in non-U.S. securities, Xxxxxxx products are subject to the risk that foreign currencies will decline in value relative to the U.S. dollar, or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Exchange-Traded Notes: Exchange-traded notes are a type of senior, unsecured, unsubordinated debt security of the issuing company. This type of debt security differs from other types of bonds and notes because ETN returns are generally based upon the performance of a market index minus applicable fees, no periodic coupon payments are distributed, and no principal protection exists. Similar to ETFs, ETNs are generally traded on a securities exchange. Investors can also hold the debt security until maturity. At that time, the issuer is obligated to give the investor a cash amount that would be equal to the principal amount times the applicable index factor less investor fees. The index factor on any given day is a mathematical equation equal to the closing value of the underlying index on that day divided by the initial index level. ETNs are subject to credit risk and liquidity risk that impact the price received upon disposition of the notes. Additional risks of investing in ETNs include limited portfolio diversification, price fluctuations, issuer default, uncertain principal repayment, and uncertain federal income tax treatment. The performance of the ETNs may vary from the actual performance of the underlying index and the performance of the underlying index components. By investing in ETNs, the owner does not have certain rights that investors in the underlying index or the underlying index components may have, such as stock voting rights.
Currency risk means the risk of an impact on the Group's performance and financial position as a consequence of changes in exchange rates. Currency risk arises through future business transactions, reported assets and liabilities and also net investments in foreign operations. The Group management continually monitors changes in exchange rates and acts accordingly.
Currency risk. Fluctuations in currency exchange rates may negatively affect the value of the fund’s investments or reduce its returns. • Mortgage-Related and/or Other Asset-Backed Securities Risk: Investments in mortgage-related and other asset-backed securities are subject to certain additional risks. The value of these securities may be particularly sensitive to changes in interest rates. These risks include “extension risk”, which is the risk that, in periods of rising interest rates, issuers may delay the payment of principal, and “prepayment risk”, which is the risk that in periods of falling interest rates, issuers may pay principal sooner than expected, exposing the fund to a lower rate of return upon reinvestment of principal. Mortgage-backed securities offered by non-governmental issuers and other asset- backed securities may be subject to other risks, such as higher rates of default in the mortgages or assets backing the securities or risks associated with the nature and servicing of mortgages or assets backing the securities.
Currency risk. Most gems are traded in USD. A risk of loss in the case of fluctuating USD exchange rates must therefore be accepted. Counterfeiting and manipulation risk: When buying a gemstone, it is often difficult to determine its authenticity. High-quality synthetically produced gemstones are difficult to distinguish from natural gemstones. Furthermore, repairs or corrections (such as crack and high-temperature treatments) to gemstones can often only be detected by experts through the use of special technology.
Currency risk. The risk that foreign (non-U.S.) currencies may decline in value relative to the U.S. dollar and adversely affect the value of the Fund’s investments in foreign currencies, securities denominated in foreign currencies or derivative instruments that provide exposure to foreign currencies. Derivatives Risk: The risks associated with investing in derivatives and other similar instruments (referred to collectively as “derivatives”) may be different and greater than the risks associated with directly investing in the underlying securities and other instruments, and include leverage risk, market risk, counterparty risk, liquidity risk, operational risk and legal risk. The Fund may use more complex derivatives that might be particularly susceptible to liquidity, credit and counterparty risk. When investing in derivatives, the Fund may lose more than the principal amount invested. Foreign Investment Risk: Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, currency, market or economic developments as well as armed conflicts and can result in greater price volatility and perform differently from financial instruments of U.S. issuers. This risk may be heightened in emerging or developing markets. Foreign investments may also have lower liquidity and be more difficult to value than investments in U.S. issuers. Foreign investments may also be subject to risk of loss because of more or less foreign government regulation, less public information, less stringent investor protections and less stringent accounting, corporate governance, financial reporting and disclosure standards. Changes in the value of foreign currencies may make the return on an investment increase or decrease, unrelated to the quality or performance of the investment itself. The imposition of sanctions, exchange controls (including repatriation restrictions), confiscations, trade restrictions (including tariffs) and other restrictions by the United States or other governments may also negatively impact the Fund’s investments. Economic sanctions and other similar governmental actions or developments could, among other things, effectively restrict or eliminate the Fund’s ability to purchase or sell certain foreign securities or groups of foreign securities, and/or thus may make the Fund’s investments in such securities less liquid (or illiquid) or more difficult to value. The type and severity of sanctions and other measures that may...
Currency risk. The values of non-U.S. securities may fluctuate with currency exchange rates and exposure to non-U.S. currencies may subject the Fund to the risk that those currencies will decline in value relative to the U.S. dollar.
Currency risk means a risk of negatively changing of securities or derivatives contracts value at your account due to changing of the currency rate of your base currency to other currencies.