Foreign-Exchange Risk
Investopedia Commentary
This risk usually affects businesses that export and/or import, but it can also affect investors making international investments. For example, if money must be converted to another currency to make a certain investment, then any changes in the currency exchange rate will cause that investment's value to either decrease or increase when the investment is sold and converted back into the original currency.
Related Links
A Primer On The Forex Market
Getting Started in Foreign Exchange Futures
See also: Currency, Exchange Rate, Export, Foreign Currency Effects, FOREX, Import, Long, Short, Transaction Exposure Effect, Translation Exposure