The currency conundrum

With currency volatility at a high, Edward Murray investigates whether currency hedging is worthwhile Up a penny or down a penny and investors are not generally too worried about how the exchange rate will affect their overseas holdings. Watch Pound Sterling devalue by over 25% against the US Dollar in four months and all of a sudden alarm bells start ringing. This is the abnormal level of volatility foreign exchange markets have seen in recent months, created by a complete lack of confidence in what the future holds. It is unlikely any genuine confidence will return until well into 20...