Hedging for currency risk foreign, between, currency, investing, difference

DoubleDip

Hi,

I would like to know whether we should hedge currency risk when (1) investing in international equity (2) investing in international bonds?

The answers are no hedging for equity & hedging for international bonds. As there are substantial differences between US / foreign bond market return correlations for hedged & unhedged returns.

Please suggest reasons for the difference in hedged & unhedged bond returns.

Many thanks,

Lee