How does EUR/USD affect my portfolio?
A currency question asks how much of a portfolio moves with an exchange rate rather than with the assets themselves. A fund priced in one currency can hold assets in several, so the exposure is rarely the currency on the ticket.
Worked through on a sample portfolio. The figures below are that portfolio’s, not yours.
Your portfolio is exposed to EUR/USD mostly through USD-denominated holdings and the cash in EUR. Here are the key figures from your data showing that exposure:
| Asset class | Exposure (value [€]) | Weight (%) |
|---|---|---|
| USD holdings (stocks & ETFs) | 20.721,48 € | 22,77% |
| EUR holdings (local cash & EUR instruments) | 45.986,84 | 50,53% |
| Crypto, cash, precious metal, others | 24.281,48 | 26,70 |
What EUR/USD moves change
- A stronger EUR vs USD (EUR appreciates): the euro value of your USD holdings would fall, reducing the euro-denominated value of the ~20.721,48 € held in USD (current_allocation 22,77%).
- A weaker EUR vs USD (EUR depreciates): the euro value of your USD holdings would rise, increasing that same ~20.721,48 € exposure.
What stays fixed in these statements
- Prices of the underlying assets (in their local currencies) are held as today; exchange-rate moves translate those into euros. No buying or selling is assumed.
A quick measure to keep in mind
- USD exposure is ~22,77% of the portfolio, so EUR/USD swings affect roughly that share of your portfolio value when translated into euros. The rest (50,53% in EUR) is not directly exposed to EUR/USD conversion.
If you want, I can run a simple scenario showing the portfolio value if EUR/USD moved by ±5% and list the resulting euro values.
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Related questions
See this for your own portfolio
The assistant answers the same question about your own holdings, with your figures and today’s prices. Import from your broker, or open the demo portfolio and ask it there.