Currency risk definition

Currency risk means the risk of losses resulting from movements in foreign currency exchange risks;
Currency risk means the potential for loss on account of movement in exchange rates of INR 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. If invested in non-U.S. securities, ▇▇▇▇▇▇▇ 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 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.

Examples of Currency risk in a sentence

  • Primary Risks: Industry concentration risk, Investment style risk, Stock market risk, Country/regional risk, Currency risk, Derivatives risk.

  • Primary Risks: Stock market risk, Country/regional risk, Investment style risk, Currency risk.

  • Currency risk: if Shares are traded in a currency which is not the currency in your jurisdiction, the value of the Shares to you may also be affected by movements in the exchange rate.

  • Primary Risks: Stock market risk, Emerging markets risk, Country/regional risk, Currency risk, China A-shares risk, Index sampling risk.

  • The principal risk components of this monitoring process are: • Currency risk is the potential loss arising from the decline in the value of a financial instrument, due to changes in foreign exchange rates or their implied volatilities.


More Definitions of Currency risk

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. 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.
Currency risk means a risk which can be attributed to fluctuations in exchange rates between currencies over a period of time;
Currency risk means that a strong U.S. dollar will reduce returns for U.S. investors while a weak
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. , means the risk of loss due to the exchange rate movements and their effect on the value of the assets in a CIU, which are denominated in the respective currency; in case CIU’s assets are invested in a different currency from the currency used to calculate the return on investment.
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...