Currency Risk

Jun 10, 2021 8:54:39 PM / by InvestorKeep

 

 

Currency Risk

The value of the US Dollar is constantly changing when compared with the currency of other nations. These currency fluctuations can impact your investments. Currency risk is the risk you incur due to these fluctuations. You may experience this risk if you are invested in international funds (and other investments). 

 

Financial professionals often attempt to reduce currency risk with hedging (a specific investment made to reduce risk by taking the opposite side of an investment). Both mutual and exchange traded funds utilize this strategy. If you are investing internationally, speak to your financial professional to see if currency risk is a concern for you and if so, how you are positioned to reduce the risk.

 

 

 

 

InvestorKeep

Written by InvestorKeep

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