Agent skill

Currencies And Fx

by JoelLewis in JoelLewis/finance_skills

Analyze currency markets, exchange rate mechanics, and FX risk management for international portfolios.

MITAuto-check passedBusiness, Finance & HR

Install Currencies And Fx

skills CLI
$ npx skills add JoelLewis/finance_skills --skill currencies-and-fx -a claude-code

Project install by default; add -g for ~/.claude/skills/.

GitHub CLI
$ gh skill install JoelLewis/finance_skills currencies-and-fx --agent claude-code

Project scope by default; add --scope user for a personal install. Needs GitHub CLI 2.90.0 or later (public preview).

Manual copy
$ git clone --depth 1 https://github.com/JoelLewis/finance_skills.git skills-src && mkdir -p .claude/skills && cp -r skills-src/plugins/wealth-management/skills/currencies-and-fx .claude/skills/currencies-and-fx && rm -rf skills-src

Use ~/.claude/skills/ instead of .claude/skills for a personal install. The folder must contain SKILL.md.

Claude Code skills documentation · loads skills from .claude/skills/

Facts

Skill name
currencies-and-fx
GitHub stars
206
Token cost
~1.9k tokens
SKILL.md length
972 words
Files
2 (incl. scripts)
Skills in repo
91
Repo updated
First seen
Licence
MIT

At a glance

Analyze currency markets, exchange rate mechanics, and FX risk management for international portfolios.

  • The user asks about exchange rates
  • SKILL.md covers Core Concepts, Key Formulas, Worked Examples and Common Pitfalls, plus 2 more sections
  • Runs Python scripts from its folder; calls uv, python3 and python
  • Interest rate parity

What it does

Currencies And Fx is an agent skill from JoelLewis/finance_skills. Analyze currency markets, exchange rate mechanics, and FX risk management for international portfolios. Use when the user asks about exchange rates, FX hedging, interest rate parity, carry trades, forward premiums, cross rates, or currency overlay programs. Also trigger when users mention 'strong dollar', 'weak euro', 'hedging foreign stocks', 'purchasing power parity', 'currency risk in my portfolio', 'EUR/USD', 'yen carry trade', or ask whether to hedge international investments.

Its SKILL.md is about 1.9k tokens, which your agent loads only when the skill is triggered. The skill folder holds 2 other files, including scripts (for example `scripts/currencies_and_fx.py`).

It sits in Business, Finance & HR. The repository describes itself as: Claude Code skill plugins for financial services — 81 skills across 7 domain plugins covering investment management, compliance, advisory practice, trading, and operations. The licence is MIT.

When your agent uses it

  • The user asks about exchange rates
  • Interest rate parity
  • Forward premiums
  • Currency overlay programs

Example prompts

  • “strong dollar”
  • “weak euro”
  • “hedging foreign stocks”
  • “/currencies-and-fx”

Requirements

  • Python 3

What it can do on your machine

Read from SKILL.md and the folder at commit 5c498ea. It shows what the files ask for, not the result of running them.

  • Tool permissions

    Pre-approves nothing: there is no allowed-tools line, so your agent's usual permission prompts apply.

    From allowed-tools in the SKILL.md frontmatter.

  • Runs code

    Ships 1 file in scripts/ (Python), which the agent can run.

    Shell commands in SKILL.md call:

    • uv
    • python3
    • python

    From the folder's file list and the shell code blocks in SKILL.md.

  • Network

    No URLs in SKILL.md. Its commands use uv, which can reach the network depending on how they are called.

    From URLs in SKILL.md, links to its own repository left out.

  • Credentials

    Names no API keys, tokens, secrets or passwords.

    From names ending in _API_KEY, _TOKEN, _SECRET, _KEY or _PASSWORD in SKILL.md.

Context cost

Currencies And Fx loads about 1.9k tokens when it runs. Until then it costs about 126 tokens; SKILL.md has 972 words of instructions outside code blocks.

Always · name and description, kept in context so the agent knows when to use it
~126
When it runs · the whole SKILL.md, loaded when a task matches
~1.9k

Estimates: characters ÷ 4, the usual rule of thumb; real counts depend on the model's tokenizer. Scripts and assets cost tokens only if the agent reads them.

Safety

Auto-check passed

The automated check found no risky patterns in SKILL.md.

Automated static check — not a guarantee. Review scripts before installing. It scans the text of SKILL.md for risky patterns (piping downloads into a shell, reading credential files, hidden Unicode, destructive commands); the scripts in this folder are not scanned.

SKILL.md

The full file from JoelLewis/finance_skills at commit 5c498ea, republished under its MIT licence (© JoelLewis). 972 words, ~1,931 tokens.

Download SKILL.mdSave it as .claude/skills/currencies-and-fx/SKILL.md (or your agent's skills folder). This skill also uses 1 other file; get the full folder from GitHub.
name
currencies-and-fx
description
Analyze currency markets, exchange rate mechanics, and FX risk management for international portfolios. Use when the user asks about exchange rates, FX hedging, interest rate parity, carry trades, forward premiums, cross rates, or currency overlay programs. Also trigger when users mention 'strong dollar', 'weak euro', 'hedging foreign stocks', 'purchasing power parity', 'currency risk in my portfolio', 'EUR/USD', 'yen carry trade', or ask whether to hedge international investments.

Currencies and FX

Core Concepts

Spot Rate

The price of one currency in terms of another for immediate delivery (T+2 settlement). Quoting convention: EUR/USD = 1.10 means 1 euro costs 1.10 US dollars. Some pairs are quoted as the number of foreign currency units per dollar (USD/JPY = 150), while others are quoted as dollars per foreign unit (EUR/USD = 1.10, GBP/USD = 1.27).

Forward Rate

The agreed exchange rate for a future currency transaction, determined by the interest rate differential between the two currencies. Forward rates are not forecasts of future spot rates — they are arbitrage-determined prices that reflect the cost of carry.

Covered Interest Rate Parity (CIP)

An arbitrage condition that must hold (and empirically does, closely):

F/S = (1 + r_d) / (1 + r_f)

where F = forward rate, S = spot rate, r_d = domestic interest rate, r_f = foreign interest rate (for the same period). If CIP were violated, riskless arbitrage would be possible by borrowing in one currency, converting, investing, and locking in the return with a forward.

Uncovered Interest Rate Parity (UIP)

A theoretical (not arbitrage-enforced) condition:

E(S_t) / S_0 = (1 + r_d) / (1 + r_f)

UIP predicts that the expected future spot rate adjusts to offset interest rate differentials. Empirically weak — high-interest-rate currencies tend to appreciate rather than depreciate as UIP predicts, which is why carry trades can be profitable.

Forward Premium/Discount

Forward Premium = (F - S) / S = (r_d - r_f) / (1 + r_f)

If the domestic interest rate exceeds the foreign rate, the forward rate is at a premium to spot (the foreign currency is more expensive forward). If the domestic rate is lower, the forward is at a discount.

Carry Trade

Borrow in a low-interest-rate currency and invest in a high-interest-rate currency, profiting from the interest rate differential. Profitable when UIP fails (i.e., the high-rate currency does not depreciate enough to offset the interest differential). Carry trades exhibit positive returns on average but with significant tail risk — sudden unwinds during risk-off episodes can cause severe losses (negative skewness, fat tails).

Cross Rate

Derive the exchange rate between two currencies using their rates against a common third currency:

EUR/GBP = (EUR/USD) / (GBP/USD)

For example, if EUR/USD = 1.10 and GBP/USD = 1.27, then EUR/GBP = 1.10 / 1.27 = 0.8661.

Currency Hedging

Use forward contracts to eliminate FX risk in international investments. A US investor with EUR assets can sell EUR forward to lock in the conversion rate. The hedging cost equals the interest rate differential between the two currencies (per CIP). When the domestic rate exceeds the foreign rate, hedging earns a positive return; when it is lower, hedging has a cost.

Real Exchange Rate

Adjusts the nominal exchange rate for relative price levels:

Real Rate = Nominal Rate × (Foreign Price Level / Domestic Price Level)

Changes in the real exchange rate reflect changes in competitiveness. If the real rate appreciates, domestic goods become more expensive relative to foreign goods.

Purchasing Power Parity (PPP)

The long-run anchor for exchange rates. PPP posits that exchange rates should adjust so that identical goods cost the same across countries. Empirically, PPP holds poorly in the short run but provides a reasonable guide to fair value over decades. Deviations from PPP can persist for years.

Currency Overlay

A systematic hedging program for international portfolios, managed separately from the underlying asset allocation. Overlay managers implement hedging ratios (e.g., hedge 50% of foreign exposure) and may make tactical adjustments based on valuation, carry, and momentum signals.

Show full SKILL.md (417 more words)Show less

Key Formulas

FormulaExpressionUse Case
CIP Forward RateF = S × (1+r_d)/(1+r_f)Arbitrage-determined forward
UIP Expected SpotE(S_t) = S_0 × (1+r_d)/(1+r_f)Theoretical future spot
Forward Premium(F-S)/S = (r_d-r_f)/(1+r_f)Forward vs spot differential
Cross RateA/B = (A/C) / (B/C)Derive from common currency
Real Exchange Rateq = e × (P*/P)Competitiveness measure
Hedging Cost≈ r_d - r_f (annualized)Cost to hedge FX exposure

Worked Examples

Example 1: Forward Rate Calculation

Given: USD/JPY spot = 150, US 1-year rate = 5%, Japan 1-year rate = 0.5% Calculate: 1-year forward rate Solution: F = S × (1 + r_JPY) / (1 + r_USD) F = 150 × (1 + 0.005) / (1 + 0.05) F = 150 × 1.005 / 1.05 F = 150 × 0.95714 = 143.57

The forward rate is 143.57 JPY/USD. The yen is at a forward premium (fewer yen per dollar forward than spot) because Japanese rates are lower. A US investor hedging yen assets back to dollars would receive this favorable forward rate, effectively earning the interest rate differential.

Example 2: Hedging Cost for EUR Investor

Given: EUR/USD spot = 1.10, EUR 1-year rate = 3%, USD 1-year rate = 5% Calculate: Annual cost/benefit of hedging USD exposure back to EUR Solution: Forward rate: F = 1.10 × (1.03)/(1.05) = 1.10 × 0.98095 = 1.0790

A EUR investor hedging USD assets sells USD forward at 1.0790 EUR/USD. Hedging benefit = (S - F) / S = (1.10 - 1.079) / 1.10 = 1.91%

Because EUR rates (3%) are lower than USD rates (5%), the EUR investor earns a positive hedging return of approximately 2% (the interest rate differential). The hedged return on USD assets for a EUR investor is the USD return plus approximately 2% from the hedge.

Common Pitfalls

  • Currency quoting conventions — EUR/USD vs USD/JPY use opposite conventions; always clarify which currency is base and which is quote
  • Confusing nominal and real interest rate differentials — CIP uses nominal rates; real rate differentials affect real exchange rates differently
  • Carry trade crash risk — carry strategies exhibit negative skewness and fat tails; profits accumulate slowly but losses can be sudden and severe
  • CIP holds by arbitrage; UIP is a theory that often fails empirically — do not assume forward rates predict future spot rates

Cross-References

  • historical-risk (wealth-management plugin): return measurement in multi-currency portfolios
  • equities (wealth-management plugin): international equity investing and currency effects
  • fixed-income-sovereign (wealth-management plugin): international bond investing and rate differentials
  • asset-allocation (wealth-management plugin): currency hedging decisions in portfolio context

Running the Script

bash
uv run scripts/currencies_and_fx.py            # run the demo (uses PEP 723 inline deps)
uv run scripts/currencies_and_fx.py --verify   # check demo outputs against the worked examples (exit 1 on mismatch)
python3 scripts/currencies_and_fx.py            # alternative (stdlib only, no installs needed)

The demo prints the calculations covered above; its values match the worked examples in this skill. Run --help for a list of the classes and functions. For programmatic use, import the module rather than running it — the demo only executes under python currencies_and_fx.py.

© JoelLewis, MIT. Rendered from Markdown: HTML in the file is shown as text, images as links, and headings moved down two levels. Raw file

Files

SKILL.md and 1 other file (scripts) in plugins/wealth-management/skills/currencies-and-fx of JoelLewis/finance_skills.

  • SKILL.md
  • scripts/currencies_and_fx.py

Open the folder on GitHubat commit 5c498ea

Compare with similar skills

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Creating Financial ModelsChen-zexi/open-ptc-agent7293 repos~1.3kAutomated safety check: PassMIT
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Questions about Currencies And Fx

What does Currencies And Fx do?

Analyze currency markets, exchange rate mechanics, and FX risk management for international portfolios. Currencies And Fx is an agent skill from JoelLewis/finance_skills. Analyze currency markets, exchange rate mechanics, and FX risk management for international portfolios.

When should I use Currencies And Fx?

Currencies And Fx fits situations like: the user asks about exchange rates; interest rate parity; forward premiums; currency overlay programs.

How do I install Currencies And Fx in Claude Code?

Run `npx skills add JoelLewis/finance_skills --skill currencies-and-fx -a claude-code`. Or copy the skill folder (plugins/wealth-management/skills/currencies-and-fx in JoelLewis/finance_skills) into .claude/skills/currencies-and-fx in your project. Claude Code loads it when a task matches its description.

How do I install Currencies And Fx in Codex?

Run `npx skills add JoelLewis/finance_skills --skill currencies-and-fx -a codex`. Or copy the skill folder (plugins/wealth-management/skills/currencies-and-fx in JoelLewis/finance_skills) into .agents/skills/currencies-and-fx in your project. Codex loads it when a task matches its description.

Can I use Currencies And Fx in Cursor, Gemini CLI or GitHub Copilot?

Cursor, Gemini CLI, GitHub Copilot and OpenCode also load SKILL.md folders. With the skills CLI, run `npx skills add JoelLewis/finance_skills --skill currencies-and-fx -a cursor` (or -a gemini-cli, github-copilot or opencode for the others). To copy it by hand, put the folder in .cursor/skills/currencies-and-fx, .gemini/skills/currencies-and-fx, .github/skills/currencies-and-fx and .opencode/skills/currencies-and-fx in your project.

What does Currencies And Fx need to run?

Going by SKILL.md and its folder, Currencies And Fx needs Python for the scripts in its folder and the command-line tools its instructions call (uv, python3 and python). Our summary lists: Python 3.

Does Currencies And Fx access the network?

SKILL.md contains no URLs. Its commands use uv, which can reach the network depending on how they are called. This is read from the text; nothing was executed.

Is Currencies And Fx safe to install?

Our automated static check of SKILL.md found no risky patterns, such as piping downloads into a shell, reading credential files or hidden Unicode. It is not a guarantee. The check reads SKILL.md only: the scripts in the folder are not scanned, so read them before running anything.

What licence does Currencies And Fx use?

Currencies And Fx is published under the MIT licence (the repository's licence). It allows redistribution, so the full SKILL.md is shown on this page.

How many tokens does Currencies And Fx use?

About 1.9k tokens (SKILL.md is roughly 7.7k characters). Agents keep only the skill's name and description in context until a task matches; then they load SKILL.md in full.

What are the alternatives to Currencies And Fx?

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Who maintains Currencies And Fx?

JoelLewis (a GitHub user) maintains it in JoelLewis/finance_skills, which has 206 GitHub stars. The repository holds 91 skills in this directory. The repository was last updated on July 18, 2026.

Source: JoelLewis/finance_skills on GitHub. Facts on this page come from the repository at the commit we read; the author's words are quoted as theirs.