@satishcsura very happy to see that you have found your answer. However I would like to point out that :
(a) there was never a statement / sentiment that one cannot recognize loss due to currency exchange;
(b) to understand the tax laws and the application thereof , one only needs to study the subject --- there is absolutely no need to have been employed by the IRS
(c) most of the volunteers in the community are either current or retired tax professionals and "experts " employed by TurboTax are mostly current tax professionals.
(d) Whether a loss is allowable or not depends on the facts and circumstances --- is it an activity for profit or a personal. Generally while personal losses are NOT deductible/recognizable, business losses are . To wit, foreign exchange losses of a business that is investing in foreign countries/ stocks etc. is indeed allowed by the mere fact of using US$ as the operating currency, a business that invests in foreign exchange contracts and straddles is allowed to recognize losses due to exchange. However a US person holding foreign currency in a savings account and repatriating the amount may or may not be able to recognize the loss --- have to prove the intent ( that this was investment and not personal use ).
I rest
