How can we profit from the falling dollar?
The green back just keeps sliding, I don't normally trade currencies but this seems like a quick and easy way to make money now. Any ideas?
Answers
2703 points
MNSL answered 9 months ago …
Lower dollar will help export companies. It will affect badly for import oriented companies
Actually some company may be benefit from change of currency value.
Some companies will benefit and some not. For example some times back I can remember Alcon Packaging Ltd was able to increase their quarterly profit due to change of US Dollar against Canadian Dollar. I doubt whether this company is trading on the sock exchange now. Weak dollar will benefit Canadian energy stocks.
But we must be very careful fall of dollar will change unexpectedly. There are too many players in the market today. Big market players can change their positions suddenly. I still believe it will happen sooner than later
However, if you are expert in currency trading you can trade US dollar against currencies such as pound, Euro, Yen etc to make profit in falling US dollar. Otherwise Pl do not enter the currency market. Please remember there are more loosers than winners in the forex market.
132 points
BigChris answered 9 months ago …
You can play ETFs. Buy other currencies against the dollar. Almost all of them are going up. Look at symbols starting with FX. For example FXE (Euro v.s dollar) FXY (Yen vs. the dollar), FXA (Austrailian vs. dollar). Look at the charts.
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