currency value (appr / depr) because, currency, investor, investment, investing

Walex

If I was a US investor, investing in the EU market and EUR:USD depreciated, wouldn't the EURO investment be in my favor because the USD strengthen?

Uranus08

Thanks Starbuk. I believe I'm correct. If EURUSD depreciates, then USD buys more EUR meaning you'd get MORE euros for one buck. So you'd gain on fx plus capital gains on your investment.

check out any recent EUR/USD chart, you'd see the EUR has been appreciating and USD been depreciating, and if you were to invest in the EU market then you're value of investment would have been offset by the fx if it was unhedged.

RMontgomery

Yes, you could buy more euros for one buck. But you don't want to buy at the end of your investment, you want to sell euros - so you lose.