Simple question about the Dollar

[colly]

I have some shares in Dollars in a US eTrade Account. It was from an Employee Share Purchase Plan in work, I have made ok gains on them. I want to sell now and put money elsewhere.

I hear about how the Dollar is falling against the Euro - does this mean that if the value of my shares stays the same, it is worth less to me in Euro?

Can someone explain in simple terms for me please?

 

[room305]

I have some shares in Dollars in a US eTrade Account. It was from an Employee Share Purchase Plan in work, I have made ok gains on them. I want to sell now and put money elsewhere.

I hear about how the Dollar is falling against the Euro - does this mean that if the value of my shares stays the same, it is worth less to me in Euro?

Can someone explain in simple terms for me please?

The simple answer is yes.

If the value of the currency in which an asset is nominated falls against a different currency, then they are worth less in that currency.

In practice however, all things being equal, the price of the asset will usually move to reflect the depreciation of the currency in which it has been nominated. That's why although the Zimbabwe stock market is the best performing stock market in the world, racking up quadruple-digit gains annually, you won't find many investors flocking to put their money there. It is also why oil and gold usually rise whenever the dollar falls.