Underlying Currency definition
Examples of Underlying Currency in a sentence
It is important to understand that the impact of one of the factors specified above, such as an increase in the relevant interest rates of US dollar, may offset some or all of any change in the value of the Notes attributable to another factor, such as the appreciation of an Underlying Currency against the US dollar.
All else being equal, an appreciation of the US dollar against each Underlying Currency will likely result in a decrease in the value of the Notes.
Conversely, in the event an Underlying Currency is replaced by a New Currency, the Calculation Agent shall, when determining the Cumulative Return, calculate the applicable Final Exchange Rate by using the Exchange Rate of the New Currency relative to the Base Currency on the Valuation Date, multiplied by the number of units of the applicable Underlying Currency represented by one unit of the New Currency.
As an example of the calculation described above, if the Underlying Currency is replaced by a New Currency, and one unit of the New Currency has a value equal to 1,000 units of the Underlying Currency, the Ending Value would be calculated by using the applicable exchange rate of the New Currency (relative to the Base Currency) multiplied by 1/1,000.
In the event the Underlying Currency is replaced by a successor monetary unit (the “New Currency”) as the legal tender of the Underlying Currency’s country, the Calculation Agent shall calculate the Ending Value by using the exchange rate of the New Currency relative to the Base Currency on the Valuation Date, multiplied by a fraction the numerator of which shall be “1” and the denominator of which shall be the number of units of the Underlying Currency represented by one unit of the New Currency.