Currency hedge

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Currency hedge

Applies mainly to international equities. Hedging technique to guard against foreign exchange fluctuations (i.e., short Euro l00 mm when holding a long position of Euro l00 mm in stocks).

Currency Hedge

In equities, the act of holding a position in a stock denominated in a foreign currency while holding an equal but opposite position in the currency itself. This protects the investor from fluctuations in the value of a currency adversely affecting the stock holdings.
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Establishing 2018 as the new baseline coincides with the effective date of tax reform, and the duration of the growth rate coincides with the company's foreign currency hedging program.
Contract notice: opportunity study on the application of macro-hedging and accounting for currency hedging instruments
The Fund Market Risk Sensitivity Ratings are underpinned by the systematic interest rate and currency hedging of these funds' portfolios.
In other words, the yield differential observed at the top of this page was largely accounted for by the difference between the Euro and dollar risk-free rates, which was also the determinant of the cost of (or gain from) currency hedging.
Ozaki said, 'There are tremendous business opportunities for M&A and currency hedging in the Americas.
Previously, she was at Chatham Financial, an interest rate and currency hedging advisory firm based out of Pennsylvania.
The real beauty of these products is that they aren't simply an on/off switch, but will add or reduce currency hedging in 25% increments based on the underlying indicators.
There perhaps was no need to question the value of currency hedging when the trade was working, but lately, the rising-dollar trend has stalled out and the performance advantage has been hampered as well.
Companies sometimes employ currency hedging to protect themselves against such f luctuations.
With the objective of providing currency hedging to economic agents and liquidity to the currency market, the central bank of Brazil will start, from this Friday, a programme of currency swap auctions and the sale of dollar repurchase agreements," the central bank said.
According to Reval, in practical terms, the decision this week means that most companies will elect to designate only the spot risk of their currency hedging.
Progress on Interbank Unrestricted Wakalah standards, Islamic Currency Hedging product standards and Collateralised (Rahn) Product Standard are all moving ahead," remarked IIFM chairman and Central Bank of Bahrain (CBB) executive director of banking supervision Khalid Hamad.