Definition of "Currency risk"

Steve Purcell real estate agent

Written by

Steve Purcellelite badge icon

Re/Max Affinity Plus

Situation where the United States dollar rises in value in comparison with other foreign currencies resulting in the decrease in the value of the foreign securities. This is due to the fact that the principal and income payments on the foreign securities are based on that particular foreign currency and thus must be converted into United States dollars. When that particular foreign currency is weak, and the United States dollar is strong, fewer dollars will be received upon conversion.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Insurance Terms

Liability insurance coverage, primarily for shipyards for ocean marine risks, provided in much the same manner as umbrella liability insurance for nonmarine risks. Coverages may be provided ...

Type of excess of loss reinsurance in which the insurance company (cedent) is reinsured in the event there is a casualty loss resulting in at least two insureds generating losses from the ...

Condition in which an applicant has met an insurance company's standards. Requirements include a loss that is definable; fortuitous; one of a large number of homogeneous exposures; and ...

Premium payment made by the policy owner under a universal life insurance policy, usually on an automatic monthly preauthorized bank draft basis. The amount of the payment is established ...

Assets that are not readily convertible into cash 'without a significant loss of principle, such as an automobile, a house, television set, a radio, etc. ...

Written form which has precisely the same terms as the other property insurance policies covering a particular property. ...

Limited special purposes policy that provides liability and physical damage insurance for owners and operators of trucks while engaged in business. This insurance is often purchased by a ...

High severity loss that does not lend itself to accurate prediction and thus should be transferred by the individual or business to an insurance company. ...

Coverage in health insurance by two or more policies for the same insured loss. In such a circumstance, each policy pays its proportionate share of the loss, or one policy becomes primary ...

Popular Insurance Questions