He will not hedge because he will reach double compounded positive return (1+RFC)(1+RFX)
Depending what level of FX depreciation he expects, may do nothing, may hedge FX exposure.
He may hedge RFC exposure but may do nothing because it may be short term and RFX appreciation may offset RFC losses.
As in point 1 but now double negative compounding effect, if exposure is short term, may hedge. If losses are sustainable (eg. exposure to problematic Emerging country with high political or other risks), may consider completely liquidate position.