The foreign exchange markets are an important consideration if you are run a business that deals in foreign currency. Knowing how the currencies work and the economic outlook for them is important for business decision making. If you derive a profit from a country that is appreciating in currency then you can reap the benefit of a windfall. If, however, the country you earn foreign income from is depreciating relative to your native currency then you may need to consider hedging strategies. International currency exchange rates move all the time and many companies get caught out because they don’t pay attention and implement the necessary hedging strategy. This can result in a reduction of earnings come reporting time.