Do forex movements affect your investment returns?

Hello friends – welcome to another informative Angel Broking Podcast. At the time of preparing this podcast, the rupee-dollar exchange rate stood at a staggering 78.88 rupees to a dollar. Now I think you will agree with me when I say that the pre-COVID exchange rate of 70 rupees to a dollar was bad enough – today’s is rather hard to stomach…. And that’s not even because you’re overdoing the lockdown snacks. On the bright side, since we are locked up at home we will not need to buy dollars for vacations this summer – after all, there will be no trips to exotic destinations happening this year and consequently, there is little need for most people out there to have to buy forex. However, the question at hand for investors is – do these forex investments have any effect on investments? And if yes, is the effect positive or negative? The answer is that it depends on the type of investment at hand. Some investments are indeed affected by fluctuating forex rates and others remain buffered no matter how drastic the forex movements are.