Bonds, Interest Rates & Exchange Rates
Does currency hedging eliminate exchange rate risk completely?
Polska wersja tej strony jest w przygotowaniu. Do tego czasu treść jest wyświetlana po angielsku.
No. Currency hedging does not eliminate all exchange rate risk, and gains or losses may remain depending on the hedge ratio and market conditions.
When recommending overseas asset funds, sellers are required to explain whether the fund is hedged, the target hedge ratio, the currencies covered and the main hedging instruments, so be sure to check these. If you hedge on your own, you may incur losses if you do not adjust the hedge ratio in a timely manner.
This answer is general financial information as of 14.10.2026, not investment advice. Rules and tax rates change, so please also check the latest guidance from the source institution.