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Foreign Currency Effect

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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.


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Sales growth for the quarter reflected a 2% increase in sales volumes and a 1% improvement in both net selling prices and product mix, partially offset by foreign currency effects of approximately 1%.
Cho said Toyota hopes to maintain a similar level of consolidated profit for fiscal 2005, excluding any foreign currency effects.
Excluding foreign currency effects, revenue fell 3%.
 
 
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