4 stocks to benefit from US dollar strength

ResMed Inc. (CHESS) (ASX:RMD), Westfield Corp (ASX:WFD), Computershare Limited (ASX:CPU) and Macquarie Group Ltd (ASX:MQG) are heavily leveraged to an improving US economy and dollar.

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I think this chart says it all…

AUD vs stocks
Performance of the Australian dollar versus performance of selected stocks with USD exposure. Source: Google Finance.

…the benefits of owning stocks in companies with significant U.S. dollar exposure over the past six months are plain to see.

As can be seen from the chart above, declines in the Australian-US dollar exchange rate have, unsurprisingly, coincided with the significant share price appreciation of prominent Australian companies.

However with some financial commentators and leading economists tipping the Australian dollar to fall further in 2015, these next four stocks may be capable of even more share price appreciation in the future.

  1. ResMed Inc. (CHESS) (ASX: RMD) is a global manufacturer of medical devices for sufferers of sleep apnea and other respiratory disorders. Despite a recent surge in share price, the market for its products is large and growing. For long-term investors, this one looks like a real winner.
  2. Westfield Corp Ltd (ASX: WFD) is the global arm of shopping centre powerhouse, Westfield. After spinning off its operations here in Australia and New Zealand, it is now increasingly leveraged to foreign earnings. In particular, from the world's largest consumer goods market, the USA.
  3. Computershare Limited (ASX: CPU) is the middle man between shareholders and the companies they own. It also provides an array of services to companies operating in multiple jurisdictions.
  4. Macquarie Group Ltd (ASX: MQG) is perhaps more cyclical than the three aforementioned companies. However Australia's leading investment bank has exposure to a rising US dollar and stronger global share markets. Around 65% of the bank's income is derived offshore.

Of the above four companies, I believe Computershare has the best prospects in the medium term (three to five years), whilst ResMed looks a compelling investment over the ultra-long term (10 years or more) given the multiple tailwinds at its back.

Motley Fool Contributor Owen Raszkiewicz owns shares of Computershare and is long May 2019 $6.17 warrants in Computershare. The Motley Fool owns shares of Computershare. Owen welcomes your feedback on Google plus (see below) or you can follow him on Twitter @ASXinvest. The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead.  This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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