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The U.S. dollar just suffered its worst slide since 2017.
This is a big deal because currency moves of this magnitude tend to reshuffle winners and losers across global markets. And a falling dollar doesn’t just create risk, it creates opportunity.
So let’s break down what’s happening, why it matters, and which stocks tend to benefit when the dollar weakens.
Why a Weak Dollar Changes the Game
When the dollar falls, three big things happen:
- U.S. exports become cheaper overseas
- Foreign earnings translate into higher dollar profits
- Hard assets and commodities rise in nominal terms
That’s why dollar weakness often coincides with rallies in multinationals, commodity producers, and real-asset companies. So let’s take a look at the stocks associated with these sectors that are most likely to benefit from a weakened dollar.
Large Multinationals With Heavy Overseas Revenue
Companies that earn a big chunk of their sales abroad get a built-in boost when foreign currencies strengthen against the dollar. These include, but are not limited to:
- Apple (NASDAQ: AAPL) – massive international revenue base
- Microsoft (NASDAQ: MSFT) – global enterprise and cloud exposure
- Coca-Cola (NYSE: KO) – sells products in over 200 countries
- McDonald’s (NYSE: MCD) – franchise model with global cash flows
When the dollar weakens, those foreign revenues are worth more when reported in U.S. dollars.
Commodity Producers and Miners
Most commodities are priced in dollars. When the dollar falls, commodity prices often rise, with producers benefiting directly. These include, but are not limited to:
- Freeport-McMoRan (NYSE: FCX) – copper and industrial metals
- Newmont (NEM) – gold exposure
- Barrick Mining (NYSE: B) – gold and copper
- Alcoa (NYSE: AA) – aluminum
This is why commodity stocks are often called “anti-dollar trades.”
Oil Companies
Oil companies typically perform well when the dollar is weak, as oil is priced in dollars globally, making it cheaper for foreign buyers and often driving up commodity prices. Stocks that tend to benefit from this include:
- Exxon Mobil (NYSE: XOM)
- Chevron (NYSE: CVX)
- Occidental Petroleum (NYSE: OXY)
Industrials and Export-Heavy Manufacturers
A weaker dollar makes U.S.-made goods more competitive abroad. Stocks that can capitalize on this include:
- Caterpillar (NYSE: CAT)
- Boeing (NYSE: BA)
- Deere & Co. (NYSE: DE)
This is one reason industrial stocks often outperform during extended periods of dollar weakness.
Precious Metals & Royalty Companies
Gold doesn’t pay interest, but it thrives when currency confidence slips. Stocks that benefit from this include:
- Franco-Nevada (NYSE: FNV)
- Wheaton Precious Metals (NYSE: WPM)
- Royal Gold (NYSE: RGLD)
These businesses often offer leverage to rising gold prices without direct mining risk.
The bottom line is that the dollar’s decline isn’t a prediction; it’s a fact already reflected in prices.
So be cognizant of the fact that a weaker dollar historically favors:
- Global companies
- Commodity producers
- Real assets
- Export-oriented businesses
In other words, the winners are already known; the only question is whether you’re positioned to benefit.
Because when the dollar moves, portfolios move with it – whether you planned for it or not.
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