Currency Fluctuations and Risk
by Roger Wohlner
When considering international investments, consider these tips about currency fluctuation:
- Foreign bonds are subject to more currency risk than foreign equities.
- Currency fluctuations tend to be more moderate in parts of the world where political and economic factors are stable and the local currency is strong. Avoid areas where inflation rates are extremely high.
- Diversifying your investments by country and region can help reduce the overall effects of currency risk.
- Foreign bonds are subject to more currency risk than foreign equities.
- Currency fluctuations tend to be more moderate in parts of the world where political and economic factors are stable and the local currency is strong. Avoid areas where inflation rates are extremely high.
- Diversifying your investments by country and region can help reduce the overall effects of currency risk.
Source: http://www.investorguide.com/igu-article-282-forex-basics-the-basics-of-currency-fluctuations.html
