How does currency exchange impact global market investments?

The impact of currency exchange rates on global market investments is significant. When investing in global markets, an Indian investor is exposed to currency risk as they would need to convert their Indian rupees into the currency of the country where they are investing. Exchange rates fluctuate constantly and can impact the value of investments positively or negatively. For example, if an Indian investor invests in the US stock market and the US dollar strengthens against the Indian rupee, the investor's returns will be higher. On the other hand, if the US dollar weakens against the Indian rupee, the investor's returns will be lower. Therefore, investors need to be mindful of currency exchange rates and hedge their investments accordingly.