Strong economic data helped the US dollar surge overnight which saw the AUD buying just 87.88 US cents, its lowest point in nearly eight months.
While it has now dropped more than 6% since the beginning of September, some experts are predicting that it could fall to just US77 cents next year with the US Federal Reserve widely expected to begin raising interest rates. That equates to a further 12.3% downside for the local currency.
In other words, if you were planning on booking a trip to the States or importing that designer handbag you've always wanted, you'd better get onto it ASAP.
Australian investors should also be exploring ways to play the falling dollar. One of the most effective ways is to invest in companies which generate a significant portion of their earnings overseas, in particular in the United States.
Personally, I believe Westfield Corp Ltd (ASX: WFD), ResMed Inc. (CHESS) (ASX: RMD) and Amcor Limited (ASX: AMC) are amongst the best stocks investors could buy right now. Not only are they all solid, well established businesses that offer significant growth prospects, they also derive the majority of their earnings in the U.S. and could deliver significant capital gains over the coming years.
Westfield Corp owns and operates all of the Westfield brand's assets in America and the UK, while ResMed Inc. develops and manufactures products for the treatment of various respiratory disorders. Amcor is a global packaging business with strong exposure to the world's emerging economies.
Investors could also look towards companies like Select Harvests Limited (ASX: SHV) and Aristocrat Leisure Limited (ASX: ALL) to benefit from the falling dollar.
However, buying companies leveraged to a weaker currency isn't the only way you can make incredible long-term profits. In order to grow your wealth exponentially, all you really need to do is buy high-quality stocks with reliable dividends and hold onto them for the ultra-long term. It really is that simple.