- Foreign currency movement in domestic units
- -5 %
- Asset/currency interaction
- -0.5 percentage points
- Total domestic-currency return
- 4.5 %
- Terminal domestic value per initial 100
- 104.5
Both exchange quotes use domestic currency per one foreign unit. The local total return includes the entered asset income treatment. This model omits hedges, costs, taxes and external cash flows.
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Use one quote direction
Both quote fields are domestic units per one foreign unit. Enter a local total asset return for the same period. If a source uses the inverse direction, invert both endpoint quotes first and retain their unit labels.
Reconcile the default case
A 10% local return and quotes 7.8→7.41 produce currency movement −5%, interaction −0.5 percentage points and domestic return 4.5%. Terminal domestic wealth per initial 100 is 104.5.
Keep income and external flows resolved
The local total-return input must already use an explicit income treatment. The model does not adjust deposits, withdrawals, hedges, spreads, fees or taxes. Positive endpoint quotes are required; a zero quote cannot provide a meaningful currency ratio.
Verify converted amounts
As a second representation, multiply local starting wealth by the starting quote and local ending wealth by the ending quote. Their ratio should match the combined factor when the dates and boundaries agree. This checks the conversion, not a live market price.