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

Expectations of investment return, mortality experience, and expenses used in projecting future cash values for life insurance and annuities. These projections cannot be part of the actual ...

Exchange of a new policy for one already in force. ...

Transfer of high severity risks through the insurance contract to protect against catastrophic occurrences. While insurance is generally not the most cost-effective means of recovery of ...

Procedure in Social Security that sets the benefit level for a dependent of a retired or disabled person who is receiving Social Security benefits. For example, if a retired or disabled ...

Means of providing insurance protection for the property of a business that is not at a fixed location. ...

Date, in insurance, on which a person becomes one year older. Depending on the insurance company, premiums in life and health insurance manuals are figured to the age-nearest-birthday or ...

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 ...

Disciplined approach to managing an insurance company's bond portfolio duration. When interest rates rise, the average maturity and duration of the bond portfolio is lengthened, resulting ...

Ratio of authorized control level risk-based capital of an insurance company to its total adjusted capital. This statistic determines regulatory action taken by the state's insurance ...

Popular Insurance Questions