What is currency risk?

Currency Risk, sometimes referred to as exchange rate risk, is the possibility that currency depreciation will negatively affect the value of one's assets, investments, and their related interest and dividend payment streams, especially those securities denominated in foreign currency. [source: https://www.forextraders.com/forex-education/forex-glossary/what-is-currency-risk/]

As the Nepalese currency is peg with Indian currency. Over the past 10 years, the average depreciation per annum is about 2.92%. Based on this Nepalese currency depreciate at 3% per annum compared to Euro.

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