Diversifying a portfolio usually means investing in assets priced in different currencies. Not hedging currency exposure, however, means investing in the currency as well as the asset class, which can dramatically increase the risk of a portfolio.
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Currencies: To Hedge or Not to Hedge?
This MSCI report looks at the importance and impact of the currency hedging decision for investors in light of the magnitude and volatility of recent currency movements.
Publication date: February 2009