After a very poor performance for the U.S. dollar in 2025, unpredictable policy decisions, geopolitical tensions and rising government debt…
After a very poor performance for the U.S. dollar in 2025, unpredictable policy decisions, geopolitical tensions and rising government debt levels have dragged the dollar to multi-year lows in 2026. In fact, the U.S. Dollar Index is already down another 0.6% year to date, as of Feb. 5.
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The dollar tends to outperform when the economy is booming and the Federal Reserve is raising interest rates, but the bond market is pricing in at least two rate cuts in 2026. Fortunately for investors, a weaker dollar could create significant investment opportunities. Here are seven ways to invest in a falling dollar:
— U.S. companies generating international sales.
— International stocks.
— Emerging markets.
— Commodities.
— Precious metals.
— Cryptocurrencies.
— International currency ETFs.
U.S. Companies Generating International Sales
A weaker dollar can be good news for U.S. companies with international businesses. When the U.S. dollar is strong, companies generating international sales effectively earn fewer dollars and generate lower earnings than expected. Thus, when the dollar is weak, international sales get converted from foreign currencies to U.S. dollars at more favorable rates, resulting in higher dollar-denominated results for the business. That said, a weaker dollar means goods and services being purchased with U.S. dollars become more expensive for the consumer.
Tom Gray, senior managing director and financial advisor at C.H. Douglas & Gray Wealth Management, says a declining dollar can create a favorable environment for U.S. companies that earn a large share of their revenue abroad.
“Dollar weakness helps U.S. exports — so large multinational firms that have a large percentage of overseas sales will benefit from dollar weakness,” Gray says.
Qualcomm Inc. (ticker: QCOM), Philip Morris International Inc. (PM) and Las Vegas Sands Corp. (LVS) are just three examples of U.S. stocks that generate the majority of their total revenue overseas.
International Stocks
Investors can also mitigate risks associated with high-growth emerging markets by focusing on developed international markets, such as Europe, Japan and South Korea. In addition to protecting against a weaker U.S. dollar, international stocks can diversify your investment portfolio away from U.S. stocks and the U.S. economy. Developed markets won’t provide the type of growth emerging markets will, but their economies are typically more stable and reliable. The Vanguard FTSE Developed Markets ETF (VEA) is a popular fund for diversified exposure to international developed markets. The fund’s top holdings include stocks like Nestle SA (NESN.SW), ASML Holding NV (ASML) and SAP SE (SAP).
Gray recommends U.S. investors increase their exposure to foreign equities in the current environment.
“The international markets currently represent better valuations and are projected to have better earnings growth,” he says.
Emerging Markets
In addition to U.S. stocks doing business overseas and international developed-market equities, international companies in high-growth emerging markets that have relatively low exposure to the U.S. economy also benefit from a weaker dollar.
Investors who want to take an aggressive approach to investing in international stocks can target emerging markets such as China, India and Brazil. The Vanguard FTSE Emerging Markets ETF (VWO) is one of the largest and lowest-cost emerging-market ETFs in the market, with an expense ratio of only 0.06%.
[READ: 9 Best Growth Stocks for the Next 10 Years]
Commodities
Since most commodities traded in international markets are priced in U.S. dollars, a weaker dollar — with all else equal — means higher commodity prices. As the dollar falls in value, it takes more weaker dollars to purchase a commodity, driving the commodity’s price higher. Likewise, dollar-based commodity prices must rise to match the effective price of global competitors pricing commodities in other currencies.
Crude oil prices have historically had a particularly negative correlation with the U.S. Dollar Index.
Kiana Danial, CEO of Invest Diva and author of “Triple Compounding For Dummies,” says commodities and commodity-linked stocks are a big part of her weak-dollar investment strategy.
“When the dollar weakens, commodities like oil, copper and agricultural products typically strengthen. Why? They’re priced globally, and they become cheaper for foreign buyers,” Danial says.
Investors looking to bet on commodities in 2026 can buy popular commodities funds, such as the Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (PDBC) and the United States Oil Fund (USO).
Precious Metals
Like commodities, gold is generally priced in U.S. dollars. The U.S. dollar is no longer backed by physical gold, but the value of the dollar is one of many factors that impacts gold’s value. Gold prices have soared in recent years as investors use the precious metal to hedge against inflation. However, investors also use gold as a stable store of value during periods of currency volatility.
Ben Barzideh, founding partner and wealth manager at Barzideh & Nadeau Wealth Management, says gold and other precious metals can help investors continue to grow their savings even when the dollar weakens.
“Gold, silver, copper and rare earth mineral investments should do very well in a weakening U.S. dollar landscape, just like they have for the past year,” Barzideh says.
In fact, the price of silver has experienced parabolic gains in recent months as the dollar has weakened.
“I think the current geopolitical landscape and flight-to-safety aspects are further acting as an undercurrent to the rally,” Barzideh says.
To avoid losses tied to a declining U.S. dollar, investors can buy shares of the popular SPDR Gold Trust (GLD) or the more volatile VanEck Gold Miners ETF (GDX). The iShares Silver Trust (SLV) is also a popular way to invest in silver.
Cryptocurrencies
Investors with the stomach for extreme volatility can invest in Bitcoin (BTC), Ethereum (ETH) and other popular cryptocurrencies to play a weaker dollar. The price of cryptocurrencies is typically denominated in dollars, and many investors see Bitcoin and other cryptos as digital versions of currencies or commodities.
In the long term, Bitcoin has been an exceptionally strong investment, but its extreme volatility is not for the faint of heart, as evidenced by its recent plunge in the early days of 2026. In fact, Bitcoin has had only one calendar year in which it gained or lost less than 59% in value since 2015.
International Currency ETFs
One of the most straightforward ways to profit from a weaker dollar is to invest in other fiat currencies. Foreign exchange traders can make bets on currency pairs directly, but there are also publicly traded trusts and funds that allow investors to buy and sell international currencies just like stocks. For example, the Invesco CurrencyShares Euro Trust (FXE) is an easy way to bet on the euro, while the Invesco CurrencyShares Japanese Yen Trust (FXY) provides exposure to the yen.
However, currency investors should understand that these pairs are a zero-sum game. These international currencies will gain value only during periods of U.S. dollar weakness and will lose an equal and opposite amount of value during periods of U.S. dollar strength.
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7 Ways to Invest With a Weakening U.S. Dollar originally appeared on usnews.com
Update 02/05/26: This story was published at an earlier date and has been updated with new information.
