Currency Risk
/ˈkʌrənsi rɪsk/
Definitions
- (n.) The risk of financial loss due to fluctuations in foreign exchange rates affecting international transactions or investments.
Investors must consider currency risk when holding assets denominated in foreign currencies.
Forms
- currency risk
- currency risks
Related terms
See also
Commentary
Currency risk often requires mitigation through hedging strategies to manage potential legal and financial exposure in cross-border agreements.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.