Currency hedging can be done passively or actively.

For German auto executives, who prefer to talk about turbochargers and torque, currency hedging is something of a black art.

Realized and unrealized losses from currency hedging brought interest and other expenses to $50 million, compared with $7 million in such expenses in the similar quarter a year ago.

Currency Hedging Many companies, of course, partially protect themselves against further dollar declines by hedging with contracts to buy their currencies at a preset dollar strength at some time in the future.