In this thesis, I explore the impact of the exchange rates of the national currencies of the countries Sweden, Denmark, Norway and the Netherlands together with a benchmark rate on the relative amount of leverage employed by a firm between 2015 and 2023. I employ a Feasible Generalized Least Squares model to analyze the data. I find that for Sweden all the researched exchange rates are statistically significant in explaining the level of a firm’s leverage. For Denmark this is only the case for the Swedish krona to Norwegian krone rate, Norway the U.S. dollar to euro rate, and the Netherlands the Swedish krona to Norwegian krone and Swedish krona to euro rate. The inconsistency in findings indicate heterogeneity on a cross-country level that are not accounted for within the regressions of this research.