01693cas a2200241 a 4500 AALejournalIMF006555 230101c9999 xx r poo 0 0eng d 5.00 USD 9781455201341 1018-5941 BD-DhAAL BD-DhAAL Schmittmann, Jochen M. Currency Hedging for International Portfolios / Jochen M. Schmittmann. Washington, D.C. : International Monetary Fund, 2010. 1 online resource (44 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper examines the benefits from hedging the currency exposure of international investments in single- and multi-country equity and bond portfolios from the perspectives of German, Japanese, British and American investors. Over the period 1975 to 2009, hedging of currency risk substantially reduced the volatility of foreign investments at a quarterly investment horizon. Contrary to previous studies, the paper finds that at longer investment horizons of up to five years the case for hedging for risk reduction purposes remained strong.In addition to its impact on risk, hedging affected returns in economically meaningful magnitudes in some cases. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2010/151 Full text available on IMF http://elibrary.imf.org/view/journals/001/2010/151/001.2010.issue-151-en.xml IMF e-Library