currency hedge

currency hedge
Applies mainly to international equities. hedging technique to guard against foreign exchange fluctuations ( i.e., short Euro l00 mm when holding a long position of Euro l00 mm in stocks). Bloomberg Financial Dictionary

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currency hedge UK US noun [C] FINANCE, STOCK MARKET
an agreement to buy a currency at a particular rate in the future. Companies that export goods use currency hedges to be certain about the amount they will receive for particular goods when they deliver them: »

The currency hedge had been intended to protect the company against a sharp rise in the value of the pound against the euro.

currency hedging noun [U]
»

The company is happy with its currency hedging strategy, which has helped offset the impact of the weaker US dollar.


Financial and business terms. 2012.

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