<p>Exchange rate volatility creates uncertainty about export revenues and may discourage firms from international trade participation. However, existing evidence on how exchange rate uncertainty affects different trade margins remains fragmented, and limited attention has been paid to whether financial linkages can shape these effects. This study examines how exchange rate volatility influences the extensive and intensive margins of trade and the moderating role of bilateral financial linkages. Estimating a gravity model with the Poisson Pseudo-Maximum Likelihood estimator on bilateral trade data for 171 countries over 2001–2023, the results show that exchange rate volatility significantly reduces bilateral export market shares, especially along the extensive margin and in trade between developing countries. In addition, deeper bilateral portfolio investment linkages, particularly in equity and short-term debt markets, considerably weaken these adverse effects. These findings highlight the importance of exchange rate stability and stronger financial connections in supporting more resilient trade relationships.</p>