currency diversification


A portfolio diversification strategy in which securities are purchased in various foreign currency denominations for purposes of minimizing foreign exchange risk, increasing global exposure, and capitalizing on exchange rate disparities.

Use this term in a sentence

You may want to try and get some currency diversification in your portfolio to limit your risk of one tanking.

​ Was this Helpful? YES  NO 10 people found this helpful.

There was a lot of currency diversification going on and we were all really happy with it and what we were doing.

​ Was this Helpful? YES  NO 4 people found this helpful.

The investor wanted to allocate a part of his portfolio in foreign stocks and bonds, not only for growth, but also for the currency diversification that would hedge his domestic positions.

​ Was this Helpful? YES  NO 11 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
currency depreciation currency ETF