Currency Hedging Programs: A Long-Term Perspective

11 Pages Posted: 20 Jun 2008 Last revised: 1 Sep 2009

Date Written: April 1, 2007

Abstract

This article addresses currency performance over extended periods of time, and examines the potential implications for investors considering implementation of a currency hedging program. While currency movements have tended to be mean-reverting, there have been extended periods of positive as well as negative impact for investors. By reviewing historical returns, the paper highlights the behavioral considerations that may influence the effectiveness of hedging programs.

Keywords: currency, hedging, investors, currency movements, investment, currency returns, hedging programs

Suggested Citation

Institute, Brandes, Currency Hedging Programs: A Long-Term Perspective (April 1, 2007). Brandes Institute Research Paper No. 2007-02. Available at SSRN: https://ssrn.com/abstract=1147125 or http://dx.doi.org/10.2139/ssrn.1147125

Brandes Institute (Contact Author)

Brandes Investment Partners ( email )

11988 El Camino Real, Suite 500
P.O. Box 919048
San Diego, CA 92191-9048
United States

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