SIE: 5.1.1.2.6. Currency Risk

5.1.1.2.6.  Currency Risk

Currency risk, also called exchange rate risk, includes the risk that an investment in a foreign security may lose its value due to a strengthening of the U.S. dollar against the foreign country’s currency. For example, imagine that you invest in a Japanese security that is trading on a Japanese exchange. If the dollar strengthens against the Japanese yen, you will get fewer U.S. dollars when you sell