foreign exchange fluctuation的意思|示意

Foreign exchange fluctuation，指外汇汇率的变动或波动，即不断变化的货币兑换率的变化。

Foreign exchange fluctuation has become an important consideration for international businesses, particularly for businesses engaged in international trade. In particular, it can affect the cost of imports and exports, as well as the level of profits made on international transactions.

When the local currency of a country depreciates, it would cost more when trading with currencies of other countries. For instance, if the Japanese yen depreciates against the US dollar, it would take more yen to buy one US dollar. This means that when purchasing an US dollar-denominated export, it will result in an increase in the cost of the export. Similarly, the cost of imports will increase. This situation will negatively affect profitability of a business.

Nevertheless, foreign exchange fluctuation can also have a positive impact on business. For example, if the local currency of a country appreciates against the currency of another, it would cost less to purchase imports denominated in the foreign currency. Similarly, exports denominated in the local currency would result in a higher profit for the business.

Overall, foreign exchange fluctuation can have a significant impact on businesses, both positive and negative. Therefore, businesses should take it into consideration when engaging in international trading. Proper hedging strategies should be established to reduce the risk of foreign exchange fluctuation and ensure profitability.