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Financial advisory
RES5Financial Advisory Services✓An investor holds a structured product that fully returns principal in US dollars at maturity. If the USD has depreciated against the SGD since purchase, on maturity the investor:
Even where principal is protected in the foreign currency, converting the maturity payment back can produce a loss in home-currency terms if that currency has depreciated — the study text's US$1,000 example needed roughly a 13.30% total return just to offset the FX loss.
Protection denominated in the foreign currency does not shield the investor from an adverse exchange-rate move on conversion.
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