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Betting On "U.S. Dollar Peaks"

Traders work on the floor of the New York Stock Exchange.
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Traders work on the floor of the New York Stock Exchange.

The U.S. dollar has weakened since Friday's weaker-than-expected U.S. jobs report.

The dollar index down just over 1 percent in the last week after peaking to an intraday high of 100.39 on March 13th. Some say the U.S. dollar could fall further on a delayed Fed rate hike outlook.

Jim Paulsen, Wells Capital Management Chief Investment Strategist says investors may want to consider adding exposure to the "U.S.dollar peaks" possibility. "I expect foreign economic reports to improve soon which may keep downward pressure on the U.S. dollar." Paulsen says, "many investment possibilities exist here should the dollar be peaking including energy & materials stocks."

Paulsen does expect the current earnings season to illustrate weakness among global companies with large businesses offshore and says investors may want to have a list of the U.S. companies with the biggest overseas sales and watch if these stocks get hit hard as they report their first quarter results. "It may be an opportunity to "buy" for those who believe, that the U.S. dollar may finally be peaking."