In the wave of globalized investment, exchange rate fluctuations have become one of the core variables affecting asset allocation. Whether it’s the cross-border investment decisions of multinational corporations or the global asset allocation of individual investors, exchange rate fluctuations act like an invisible conductor, reshaping return curves and risk structures. At the 2025 Global Investment Expo, the display of exchange rate risk management tools and strategies became a focus, revealing profound changes in investment logic under exchange rate volatility, from foreign exchange derivatives to robo-advisory systems, from macroeconomic models to cross-border arbitrage cases.
The impact of exchange rate fluctuations on investment returns is primarily reflected in the revaluation of cross-border assets. Taking overseas real estate investment as an example, when investors exchange their local currency for foreign currency to purchase overseas properties, exchange rate changes directly alter the RMB-denominated cost of the assets. If the target country’s currency depreciates during the investment period, even if the local property price remains unchanged, the asset value measured in local currency will shrink; conversely, currency appreciation may bring additional returns. This “dual pricing” effect is particularly pronounced in high-rent-yield cities like Dubai and Phnom Penh—while local properties are priced in US dollars or local currency, Chinese investors need to assess the actual return through currency conversion, and exchange rate fluctuations can cause expected returns to deviate by more than 5 percentage points. At the overseas property exhibition area of the investment expo, several institutions launched “currency hedging” investment products, locking in exchange costs through forward contracts to provide investors with more stable return expectations.
The impact of exchange rate fluctuations on the investment value of import and export companies is even more direct. When the local currency depreciates, export-oriented companies’ products become more price-competitive in the international market, with order volumes and profit margins increasing simultaneously, and their stocks or bonds often becoming targets of investment. Import-oriented companies, on the other hand, face rising cost pressures, and their investment value may be underestimated. At the 2025 investment expo, the case of a Southeast Asian manufacturing company attracted attention: due to the depreciation of its local currency, the company’s export orders surged by 30%, driving its stock price up by 45% within six months, while the cost of imported raw materials only increased by 12% during the same period, and its net profit margin actually expanded to 18%. This “currency dividend” has attracted a large number of investors to invest in export-oriented assets. At the expo, investors used a display screen showing “currency-sensitive industry indices” to screen potential targets using real-time data, demonstrating a deep understanding of the correlation between exchange rates and industries.
To cope with exchange rate volatility risks, investors and institutions showcased diversified strategies at the expo. First, they reduced single-currency risk through diversification, such as simultaneously allocating assets denominated in US dollars, euros, and Japanese yen, leveraging the negative correlation between currencies to hedge against volatility. Second, they used financial derivatives to lock in exchange rates, such as foreign exchange futures and options. One multinational fund demonstrated at the expo how it hedged its dollar assets against exchange rate losses caused by the appreciation of the RMB by buying dollar put options. Third, they used intelligent investment advisory systems to dynamically adjust holdings. An AI model launched by a technology company can analyze global exchange rate trends and asset prices in real time, automatically triggering rebalancing instructions. During the dollar volatility period in the third quarter of 2025, it helped users avoid approximately 8% of potential losses.
The interaction between safe-haven assets such as gold and exchange rates also became a hot topic at the expo. When a currency depreciates, gold’s value-preserving properties become more prominent, leading investors to increase their allocations; conversely, when a currency appreciates, gold prices may be suppressed. A gold investment institution set up an “Exchange Rate-Gold Price Linkage Simulator” at its exhibition area. Investors could input different exchange rate scenarios to see the changes in profits and losses on their gold investments. This intuitive experience helped investors understand the impact of exchange rate fluctuations on their asset portfolios.
Exchange rate fluctuations present both a challenge and an opportunity for optimizing asset allocation. At the 2025 Global Investment Expo, from innovative exchange rate risk management tools to the practice of cross-market strategies, from the deep correlation between industry and currency to technology-enabled intelligent decision-making, investors are adopting a more rational attitude and more sophisticated methods to cope with exchange rate fluctuations. When the pulse of exchange rates resonates with the rhythm of investment, the boundaries of global asset allocation are redefined—no longer a simple “buy and sell,” but a wise game of understanding economic cycles through exchange rates and capturing value opportunities through fluctuations. In this silent financial battlefield, only continuous learning and flexible adaptation can ensure steady progress amidst exchange rate waves and achieve long-term wealth appreciation.
