Trading foreign currency wiki
Foreign currency effects are gains or losses on foreign investments due to changes in the relative value of assets denominated in a currency other than the principal currency with which a company normally conducts business. A rising domestic currency means foreign investments will result in lower returns when converted back to the domestic currency.
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The opposite is true for a declining domestic currency. Foreign investments are complicated by currency fluctuation and conversion between countries. A high-quality investment in another country may prove worthless because of a weak domestic currency.
Foreign Exchange
Foreign-denominated debt used to purchase domestic assets has led to bankruptcy in several cases due to a fast decline in a domestic currency or a rapid rise in the currency of the foreign-denominated debt.
Dictionary Term Daily forex currency rates ato The Day. A measure of what it costs an investment company to operate a mutual fund.
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Foreign Currency Effects Share. What are 'Foreign Currency Effects' Foreign currency effects are gains or losses on foreign investments due to changes in the relative value of assets denominated in a currency other than the principal currency with which a company normally conducts business.
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