SIE: 5.1.1.2.6. Currency Risk

Taken from our SIE Online Guide

5.1.1.2.6. Currency Risk

Currency risk, also called exchange rate risk, includes the risk that an investment in a foreign security may lose its value due to a strengthening of the U.S. dollar against the foreign country’s currency. For example, imagine that you invest in a Japanese security that is trading on a Japanese exchange. If the dollar strengthens against the Japanese yen, you will get fewer U.S. dollars when you sell

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