We offer a unifying empirical model of covered and uncovered currency premia, interest rates and spot and forward exchange rates, both in the cross section and time series of currencies. We find that ...

Explore currency overlay strategies that separate currency risk from asset management, helping investors mitigate risks and improve international investment decisions.

Using tools like forwards and options, currency-neutral funds hedge foreign-exchange risks. Investing in currency-neutral funds can protect against losses from unfavorable exchange-rate shifts.

Learn how currency adjustment factor (CAF) affects shipping costs between the U.S. and Pacific Rim countries, compensating for currency and exchange rate fluctuations.