Thanks Mike, but for a savings acct there seems no place to deduct the loss. For example:
Convert 100USD to 500Lira, then assume you get 20% interest on lira = 100 lira interest
Through the end of the year USD appreciates against lira and FX conversion moves from 5 to 8.
At the end of the year 500lira principal PLUS 100 lira interest gives 600 lira total, which can be converted to 75 USD as the USD appreciated strongly.
In this case we report 12.5 USD as interest (12.5USD=100 lira) and pay tax on 12.5USD. However, the total value of the account in USD terms went down from 100USD to 75USD. Where can we report that $25 loss?
