Foreign Currency Effect

Foreign Currency Effect

The gain or loss on an investment denominated in a foreign currency due to changes in the exchange rate. For example, a rising domestic currency will result in a loss in a foreign investment because each foreign currency unit converted will result in fewer domestic currency units. The opposite is true for a falling domestic currency or a rising foreign currency. Foreign currency effects theoretically do not occur with pegged currencies if the foreign currency is pegged to the domestic one or vice versa. See also: Foreign exchange risk, Sovereign risk.
References in periodicals archive ?
Growth at Survey and the revenue contribution from Seabed Geosolutions were partly offset by lower multi-client sales and a negative foreign currency effect of 4.
7% from the same period last year, due primarily to a decrease in sales volume and model mix, an increase in fixed costs per unit as production volume decreased, the impact of raw material price increases and the unfavorable foreign currency effect.
4% from the same period last year, due primarily to decreased sales volume and model mix, increase in fixed cost per unit as production output has reduced and the unfavorable foreign currency effect, despite decreased SG&A expenses.
Foreign currency effects for intercompany loans that were previously recorded through OCI may now need to be recorded through earnings
B) said it had first quarter sales of USD631 million, down two percent from a year ago, the result of negative foreign currency effects.
First-half segment operating profits of $147 million were 8 percent below last year's first half due to negative foreign currency effects and increased advertising investment.
Despite unfavorable foreign currency effects, Fire Rescue Group sales were up $0.
Unfavorable foreign currency effects are anticipated in the upstream and downstream business segments though the U.
Excluding foreign currency effects, net sales for Cereal Partners Worldwide (CPW) rose 5 percent and net sales for Haagen-Dazs Japan declined 8 percent.
Organic revenue declined 1%, excluding foreign currency effects.
Sequentially, operating profit grew from higher volumes and positive foreign currency effects.
As with sales, weak demand in South America more than offset the benefits of a stronger North America market, and foreign currency effects reduced segment earnings by about $5 million.
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