On Tuesday the Reserve Bank of Australia opted to keep rates on hold for another month and signalled that it has no intention of raising rates any time soon.
This caused the Australian dollar to give back recent gains, sending it down from 77 U.S. cents to 75.8 U.S. cents.
With the U.S. Federal Reserve now periodically raising rates, I believe this is the start of even greater declines for the local currency.
I'm not alone in this view either, with economists at Westpac Banking Corp (ASX: WBC) also predicting a sharp decline for the dollar.
According to the most recent Westpac Weekly, its economists expect the Australian dollar to fall to 73 U.S. cents by December, before ultimately dropping to 65 U.S. cents by the end of next year.
Whilst this wouldn't be great news for companies that import raw materials, some companies would benefit greatly.
Here are two worth considering:
BWX Ltd (ASX: BWX)
The company behind the Sukin skincare range has had huge success in the Australian market, but has recently expanded its presence internationally. As well as launching Sukin into Canada, China, and the United Kingdom, this week the company announced the acquisition of the number one natural cosmetics brand in the United States, Mineral Fusion. I expect BWX will leverage its distribution network to launch the Sukin brand into the lucrative market in the near future.
Nanosonics Ltd. (ASX: NAN)
In February this infection control specialist reported an incredible 131% jump in half-year sales to $36.1 million. As the vast majority of these sales were generated in the enormous U.S. market, I believe that Nanosonics is a company that is likely to benefit greatly from favourable currency movements. With its shares down 17% in the last three months, I feel now could be an opportune time to invest.