Currencies & Forex

Exchange rates and currency risk in your portfolio.

1. How Exchange Rates Work — An exchange rate is the price of one currency in terms of another. Here is how to read currency pairs, what the quotes mean and how big the world’s currency market really is.
2. What Moves a Currency — Interest rates, inflation, growth and investor fear all move currencies. Here are the main forces, with a real example of how far a major currency can swing in a single year.
3. Currency Risk in Your Portfolio — When you own foreign stocks, your return depends on both the stock and the exchange rate. Here is how currency moves added to international returns in 2025 in our data, and how they can subtract too.
4. Strong vs. Weak Dollar — A strong dollar makes foreign trips cheaper but hurts U.S. exporters. A weak dollar does the opposite. Here is who wins and who loses in each case, and how the dollar affects commodities and foreign markets.
5. Hedging Currency Exposure — Currency hedging removes the exchange-rate part of a foreign investment’s return. It smooths the ride, but costs money and can backfire. Here is how hedged funds work and when hedging makes sense.
6. Forex Trading Basics — Forex trading means speculating on currency pairs, usually with heavy leverage. Here is how pips, lots and leverage work, what U.S. rules allow and why most beginners should be cautious.