RBC Dexia Investor Services has launched a new passive foreign exchange hedging service it says can protect clients’ investments against currency translation risk, an issue given heightened importance since forex markets turned more volatile.

Under the package, clients will outsource responsibility for data capture, currency hedging calculations and transaction reporting to RBC Dexia. They can also outsource the generation, execution and settlement of trades.

Recent currency moves – such as the fall in the dollar against emerging market currencies like the Brazilian real – have put the management of currency risk under the spotlight. Even a modestly adverse currency movement can make a sizeable dent in an investor’s portfolio.