For international investors, currency movements directly affect your total returns since US dividends are paid in USD. When the USD strengthens, your dividends are worth more in local currency – a bonus return. When it weakens, conversion yields less, but you still hold a globally valuable asset.
Strategic benefits of USD-denominated investments:
- Natural hedge against local economic downturns and currency devaluation
- USD is the world's primary reserve currency – historically the most stable major currency
- Direct exposure to the world's largest economy and most liquid stock market