Are products invested in foreign currency given higher risk grades?

Under the criteria for determining the risk grade of investment products, products invested in foreign currency, such as foreign-currency-denominated funds and overseas bonds, in principle have their overall risk grade raised by 1 grade to account for exchange rate risk.

If the currency is extremely volatile, the grade may be raised by up to 2 grades, and if currency hedging has substantially reduced the exchange rate impact, it may not be raised. This means the same asset can carry a different level of risk depending on the currency and whether it is hedged.