Simulation

What Happens to Your Overseas Asset When the Exchange Rate Moves

If you hold €10,000 worth $10,800 at 1.08 and the euro strengthens 5% to 1.134, your holding rises to $11,340, a $540 gain. A 5% weaker euro drops it to $10,260, a $540 loss. The dollar value moves one-for-one with the rate percentage change, so a 20% swing means a 20% gain or loss on the converted value. Currency exposure is real risk for anyone paid, invested, or owning property abroad.

Results

Visualization

UnitFig provides illustrative currency and finance estimates only. Exchange rates and transfer fees change constantly and are shown here as user-entered assumptions, not live quotes. This is not financial advice. Verify all rates with your provider before transacting.

How It Works

The dollar value of a foreign asset is Asset x Rate. A rate change of c multiplies the rate by (1 + c), so the new value is Asset x Rate x (1 + c). The percent change in dollar value equals the percent change in the rate, exactly. The simulator computes the new rate and value for your entered move, then plots the value across a range from -20% to +20% so you can see the linear sensitivity. A 10% stronger foreign currency means a 10% larger dollar holding, and vice versa.

What Should You Do?

Treat currency as a position you are implicitly holding. If most of your wealth or income is in one currency but your goals are in another, a move can help or hurt materially. For large or long-dated exposure, consider hedging with forward contracts or a multi-currency account, though hedging has its own cost. Don't assume a strong home currency is always good if you plan to spend abroad. Re-check the rate assumption before any conversion, since the simulator uses the rate you enter, not a live quote.

Frequently Asked Questions

Why is the change exactly the rate change?

Value equals Asset x Rate, so scaling the rate by (1 + c) scales the value by the same factor. The percent moves match.

Does this include investment returns?

No, it isolates the currency effect. Add the asset's own return on top for total impact.

How do I hedge this risk?

Forwards, multi-currency accounts, or matching currency of assets to spending can reduce exposure, each with tradeoffs.

Is a stronger home currency good?

It helps buying abroad but hurts foreign earnings. It depends on your cash flows, not a simple rule.

Are these live rates?

No. Enter the rate you actually observe; the tool projects from that assumption.