Pwc report shows forex risk affected investment in 2016

A specific and interesting topic!

According to a report by PwC (PricewaterhouseCoopers), foreign exchange (forex) risk had a significant impact on investment decisions in 2016. Here are some key findings from the report:

1. Forex volatility increased: The report highlights that 2016 was a year of significant volatility in foreign exchange markets, with the US dollar experiencing a sharp appreciation against many major currencies.
2. Investment decisions affected: The increased volatility in forex markets led to a significant impact on investment decisions, with many investors becoming more cautious and risk-averse.
3. Currency fluctuations affected returns: The report notes that currency fluctuations had a significant impact on investment returns, with some investors experiencing losses due to unfavorable currency movements.
4. Investors sought hedging strategies: In response to the increased volatility, many investors sought to hedge their exposure to forex risk through various strategies, such as currency forwards, options, and swaps.
5. Impact on emerging markets: The report highlights that emerging markets were particularly affected by the increased forex volatility, with many experiencing significant currency depreciations and associated economic challenges.

Some of the key statistics from the report include:

• 71% of investors reported that forex risk had a significant impact on their investment decisions in 2016.
• 55% of investors reported that they had increased their use of hedging strategies to manage forex risk.
• 45% of investors reported that they had reduced their exposure to emerging markets due to concerns about currency volatility.

Overall, the PwC report suggests that the increased volatility in forex markets in 2016 had a significant impact on investment decisions, with many investors seeking to manage their exposure to currency risk through various strategies.