Invested: Questions marking the currency landscape

Why should exporters hedge currencies?

Different companies hedge for different reasons. Some hedge simply to eliminate, foreign exchange risk, insofar as is possible. Other companies hedge because they want to focus on their underlying business without the worry of large swings in their foreign exchange exposures. Then some companies hedge more actively to actually make money from foreign exchange swings.

Sterling’s depreciation since the June referendum illustrates that hedging policies can save serious ...