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Currency

Foreign exchange risk

Foreign exchange risk refers to the possibility of an investor's position in a foreign currency losing value due to fluctuations in the exchange rate. This can occur when the exchange rate moves in a direction that decreases the value of the investment. It is a crucial concept in the world of finance and understanding how to manage it is essential for any successful investor. Let's delve deeper into this topic and explore strategies for mitigating foreign exchange risk.
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