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If your pension doesn’t pay out in dollars (ie, you’re a German pension) then you’re exposed to swings in the dollar-euro exchange rate. If the Euro appreciates
by Armisael16 7y ago
If your pension doesn’t pay out in dollars (ie, you’re a German pension) then you’re exposed to swings in the dollar-euro exchange rate. If the Euro appreciates relative to the dollar but you’re holding T-bonds, you lose money.