Should you diversify your currencies?


Nader Hamid
, Portfolio Manager with TWM Group at iA Private Wealth presents our Chart of the Month. You can also see this video in French presented by Jean Hénault by clicking here

This month, we selected a chart highlighting the importance of exposure to major world currencies. Our graph shows the valuations of 10 major global currencies relative to the Canadian dollar in 2018.

As we can see here, compared to the Canadian dollar, the Japanese yen increased in value by 11.5%, while the US dollar increased by 8.5%. 

Despite the uncertainty surrounding Brexit, this graphic shows that even the Euro appreciated by 3.6% in 2018 vis-à-vis the Canadian dollar.

On the flip side, certain emerging market currencies did depreciate compared to the Canadian dollar. Like the Russian ruble, which lost 10.3%, and the Brazilian real at 7.4%. 

TWM Group - Chart of the Month - currencies

The Key Takeaway?

To protect capital and mitigate the impact of market fluctuations, exposure to major currencies remains an excellent long-term diversification strategy -especially for us Canadian investors.

On behalf of TWM Group, thank you for watching our Chart of the Month. See you next time.

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