The euro plunges against the dollar. The pound rises. And I find myself, entirely inadvertently, almost perfectly hedged as far as income goes. Serendipity is a weird thing.
I earn in three different currencies. People in the UK denomiate my earnings in £ and pay me in £. The bulk of my earnings, while paid in $, are calculated in € and then converted at the appropriate rate of the day of payment. And there’s a small amount of $ earnings as well.
And my expenses are largely in €, some in £ and a little bit in $. And as it happens, through no planning at all, those income streams are largely equal to the expense streams in each currency. I am thus hedged, entirely by happenstance.
Ain’t that odd?