(alsoforeign currency risk)FINANCEtheriskthat aninvestmentin aforeigncurrencyorexportsto aforeigncountrymightlosevalueif thecurrencyof thatcountrylosesitsvalue:Because thefundis denominated insterling, there's nocurrencyrisk.(Definition ofcurrency riskfrom theCambridge Business English Dictionary? Cambridge University Press)
Examplesofcurrency risk
currency riskAs a result of higher political andcurrencyriskdeterring foreign investors, asset sales occur more commonly in developing countries.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.Depending on the country there is normally a bias towards the domestic market due to familiarity, and the lack ofcurrencyrisk.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.Investors will therefore not face anycurrencyrisk, because they will not have to invest in dollar denominated or rupee denominated contracts.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.They did not expose themselves to either interest rate orcurrencyriskand typically held asset to maturity.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.A higher standard deviation would signal a greatercurrencyrisk.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.This is referred to ascurrencyrisk.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.This result may provide some discipline on the channels through which economic shocks can effectcurrencyriskpremia.From theCambridge English CorpusBoth firms are exposed tocurrencyriskthat they would like to hedge.From theCambridge English CorpusWe find large variations in the magnitude of the dynamic response of thecurrencyriskpremium across different states of the economy.From theCambridge English CorpusContracts are designed to minimise exposure of investors to commercial andcurrencyrisk.From theCambridge English CorpusThese examples are from corpora and from sources on the web. Any opinions in the examples do not represent the opinion of the Cambridge Dictionary editors or of Cambridge University Press or its licensors.#https://dictionary.cambridge.org//dictionary/english/currency-risk##
