Inflation is like corrosion. Initially, it can make investment returns less attractive. Over time, it can significantly eat away at an investment’s value. For U.S. investors looking for an inflation hedge, holding foreign currencies may be one option. But just how effective are they at managing inflation risk? Today’s infographic looks at how the performance of foreign currencies compared to U.S. inflation rates over the last four decades.
Source: https://advisor.visualcapitalist.com/can-foreign-currencies-act-as-an-inflation-hedge/