Currency Risk in Investing: How Exchange Rates Affect Returns
Exchange rates rarely show up on a fact sheet as a headline risk, yet they can quietly decide whether an investment feels brilliant or disappointing. You can pick a great business, buy it at a sensible price, and still end up with returns that are muted, uneven, or even negative, simply because the currency you hold in moved against you. That is the core of currency risk in investing: the performance of an asset in its local market may be one thing, while the return you exp