As the Dollar Drops, these Stocks Rock

Focus: CURRENCIES

Mike Larson Image Mike Larson Senior Analyst, Weiss Ratings

To help you identify stocks that are benefitting from a falling dollar, I combed the Weiss Ratings database. I created a stock “screener” including companies domiciled in the 10 foreign countries and traded here on major U.S. exchanges, writes Mike Larson. 


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With the Federal Reserve hiking interest rates and the U.S. economic data coming in solid, you’d expect the dollar to be flying. But instead, it’s sinking like a stone.

Just look at this chart of the U.S. Dollar Index, which tracks the performance of the buck against a basket of six major world currencies. The euro is weighted the most heavily in the index at 57.6%, followed by the Japanese yen, British pound, Canadian dollar, Swedish krona, and Swiss franc.

chart 1

The trend is abundantly clear. In fact, the dollar hasn’t been this weak against the pound since last September (despite all the Brexit hoopla) ... the Australian dollar since May 2015 ... and the euro since January 2015.

The first obvious question is “Why?” And I think the answer is that expectations about relative global growth rates and future central bank policies are changing.

We all know the U.S. Fed is in the midst of a tightening cycle.

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