FX Breakpoint
Determine the break-even rate for deferring foreign→local conversion via a local-currency loan.
Inputs
Pick one field to solve for. The break-even is when the rate gain just offsets the loan cost.
FX spread isn't a separate input here: in this scenario both options do exactly one foreign→local conversion at the same rate-times-spread, so it cancels out of both the break-even and the P/L.
Sensitivity
P/L (local currency) at ±2% increments up to ±10% applied to the break-even r₁.
| Δ | Break-even rate | P/L |
|---|---|---|
| +13.91% | 56.33 (+6.88) | +362,444.95 |
| +11.84% | 55.3 (+5.85) | +289,955.96 |
| +9.77% | 54.28 (+4.83) | +217,466.97 |
| +7.7% | 53.26 (+3.81) | +144,977.98 |
| +5.63% | 52.23 (+2.78) | +72,488.99 |
| +3.56% | 51.21 (+1.76) | +0.00 |
| +1.48% | 50.18 (+0.73) | -72,488.99 |
| -0.59% | 49.16 (-0.29) | -144,977.98 |
| -2.66% | 48.14 (-1.31) | -217,466.97 |
| -4.73% | 47.11 (-2.34) | -289,955.96 |
| -6.8% | 46.09 (-3.36) | -362,444.95 |