Posts  / #POST-206562
REDDIT

Does exposure to other currencies help diversification if the primary currency devalues?

B
Apr 12, 2025 · 14:58

If something happened whereby the USD value fell relative to other currencies (like euros), would ETFs/mutual fund prices which I'm investing dollars into, be affected? I'm struggling to understand if something like a three fund portfolio would benefit from shifting towards international investment, or if someone would need to purchase euros using USD in order to hedge against this.

Thanks!