# CURRENCY ADJUSTED RETURNS: How to adjust stock returns in foreign currency (e.g., EUR) to local currency (USD)?

I have collected monthly stock returns (in %) denominated in EUR and exchange rate EUR/USD.

I am trying to adjust the monthly stock returns denominated in EUR to monthly stock returns denominated in USD.

How do I calculate the currency adjusted returns?

So far I have calculated the monthly change in the exchange rate, then I have multiplied the change in the currency by the EUR return.

• I think that was asked before. Sep 24, 2021 at 20:21
• It is not completely the same question. The question that you refer to concerns how to convert closing prices into another currency. I am trying to adjust return data (in %) in one currency into another currency. :-) Sep 24, 2021 at 20:42
• "I have collected monthly stock returns (in %) denominated in EUR and exchange rate USD/EUR" - step 1, is the data synchronous? Sep 24, 2021 at 20:49
• @user42108, yes - data is synchronous. Sep 24, 2021 at 20:59
• @oliver: if you convert a EUR based Wealth Index into USD and then compute the percent changes in the latter, that gives you the USD returns. The answer by AKdemy below proves this result and gives you the explicit formulas (res1 and res2, which are equal). Sep 25, 2021 at 15:54