Let’s say I buy into an S&P500 fund through my Japanese broker. The fund is in yens. However, the stocks it is systematically buying/selling is in USD.
How does a strong yen or a weak yen affect me?
It seems to me that a strong yen would increase my returns (or the value of each fund unit) because the fund can buy more US stocks for the same amount of yens. At the same time, it seems to me that a weak Japanese yen increases my returns because any increase in S&P500 is amplified by the cheap yen versus dollars.
Is that correct? I am sure I am misunderstanding a few things. Could you help me understand this phenomenon properly? Thank you so much!
by NihonbashiJazz