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 ?
Risk-weighted assets were flat including a negative EUR3 billion foreign currency effect, which offset an underlying increase mainly due to an operational risk component.
This reduction in capacity should benefit (passenger-unit revenue) and reduce the negative foreign currency effect.
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.
Foreign currency effects decreased earnings in the 2017 fourth quarter by $96 million.
Reflecting an increase in consolidated motorcycle unit sales and the favorable foreign currency effects, the following upward revisions were made to the previously announced consolidated financial forecasts for the current fiscal year (April 1, 2017 through March 31, 2018).
The company said the negative foreign currency effects on adjusted net income and adjusted EBITDA compared with the guidance plan level are expected to be USD0.
B) said it had first quarter sales of USD631 million, down two percent from a year ago, the result of negative foreign currency effects.
Excluding foreign currency effects, comparable sales for international stores grew 7% in the company's second quarter, outpacing the 5% growth rate at its domestic stores.
Foreign currency effects for intercompany loans that were previously recorded through OCI may now need to be recorded through earnings
Foreign currency effects had a negative impact on sales of SEK52m.
Medtronic projected fiscal 2010 revenue growth of 5% to 8%, excluding any foreign currency effects.
Excluding foreign currency effects and acquisitions, it was seven per cent ahead.
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