RE: currency exchange risk of foreign bonds
For me, I look at the FISCAL and DEBT fundamentals of a country to determine whether the future of a currency is STRONGER or WEAKER.
Consider this — America’s debt to GDP ratio has now approached 100%. Australia’s is a mere 22% and there is strong clamor on both sides of the political fence to SHRINK that.
I would not be surprised to see the Aussie strengthen vs the USD ( which it has the past few years ).
I am assuming you are correct on 22% Australian debt. Next question, and just as pertinent is, in which direction is the country headed, and how prominent is the currency in world markets. US dollar is still the reserve currency.
But I am in full agreement that US currency is being debased by the day. Which is why I am focusing on asset based securities, and staying out of cash and bonds as much as possible. Reits, Chemicals & Energy are favored by me.