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Old 01-22-2015 | 02:26 PM
  #14  
Andy
Gets Weekends Off
 
Joined: Mar 2006
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From: guppy CA
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Originally Posted by Probe
Yes, but it didn't say which way they hedged. They could be winning, or losing, on that bet as well.
International companies hedge currency against the risk of USD appreciation, so hedging in this case would be selling the EUR. This is because any profits in foreign currencies are decreased when you convert those profits back to USD when the USD appreciates. So in this case it's a profitable hedge.
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