In the News

Title

Wealth Adviser Daily Briefing: The Downside of Hedging Currency Risk

Document Type

Article

Publication Date

5-9-2016

Abstract

The dollar’s weakness over the past few months has shown the downside of hedging currency exposure when investing in overseas stocks and bonds, according to The Wall Street Journal. The reason: When the U.S. dollar weakens against a currency, an investor who doesn’t hedge will get more dollars when converting holdings denominated in that currency back to U.S. dollars.