Wealth Adviser Daily Briefing: The Downside of Hedging Currency Risk
Wade D. Pfau
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.
Tergesen, Anne, "Wealth Adviser Daily Briefing: The Downside of Hedging Currency Risk" (2016). In the News. 1321.