Why Is Currency Important?
Currency is important when investing because it can affect the value of an investment. For example, if an investor holds assets denominated in a foreign currency and that currency depreciates against their home currency, the value of their investment will decrease.
Similarly, if the foreign currency appreciates, the value of the investment will increase. Additionally, currency fluctuations can also affect the cash flow of an investment, such as dividends or interest payments. Understanding and managing currency risk is an important aspect of investing.