Westfield Corp Ltd (ASX: WFD) has become one of the casualties from the stock market's broad selloff today with the stock down 3.7% at $9.36.
By comparison, the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has shed 1.6% to be trading at 5,730 points.
Westfield Corp is the owner and operator of Westfield-branded shopping malls in the U.S. and U.K.
This as a result of the global restructure of the Westfield business last year. Indeed, the company is in an excellent position to benefit from the recovery of overseas economies, while it is also well placed to benefit from a lower Australian dollar.
Unfortunately, the currency factor can also work against Westfield. The Reserve Bank of Australia cut interest rates to 2% yesterday in the hope of pushing the Australian dollar below the US75 cent mark, but instead the currency has surged to be trading at US79.35 cents.
The reason behind the dollar's ascent can likely be attributed to the language used by the Reserve Bank, where it indicated that interest rates are unlikely to fall any further.
Indeed, currency movements are extremely difficult to predict, let alone forecast with any accuracy. But given the headwinds facing the Australian economy (compared to the tailwinds behind the U.S. economy), it is reasonable to assume the dollar could still have room to fall further.
With Westfield's shares now trading at $9.37 down 12% from a high of $10.66 in March investors could certainly look to take this as an opportunity to load up on a high-quality company trading at a reasonable price.
An even better bet than Westfield Corp today…
