Currency Risk is the risk that the values of foreign investments may be affected by
changes in the currency rates or exchange control regulations.
Should I rebalance my portfolio ignoring changes
in the currency rate or rebalance post currency adjustment?
The reason this is important is that if the dollar strengthens while you hold a Swiss stock, the change
in currency rates will cause you to receive fewer dollars for the Swiss francs — and this can turn a paper profit from stock appreciation into a net loss.
Overall, the percentage changes
in currency rates are very low compared to other financial trading instruments (commodities, equities).