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Fast FX: Weak Dollar Trades

Can you bank on a weak dollar for a while longer? That's what traders want to know after the dollar fell against most major currencies on Wednesday after its biggest rise in three weeks.

Most traders believe the dollar's longer-term declining trend is intact because, though the Fed may be in the very early stages of withdrawing its huge stimulus measures, it is still nowhere near raising interest rates from record lows.

That view was bolstered on Wednesday by St. Louis Federal Reserve President James Bullard, who said officials may tighten policy by adjusting emergency asset buying programs rather than by raising interest rates.

"That throws cold water on any lingering thoughts of rate hikes," says Jacob Oubina, strategist at Forex.com and more than offsets comments this week from Fed Chairman Ben Bernanke, who triggered a dollar rally when he said the central bank was attentive to the dollar's value.”

What’s the trade?

As Fast Money often tells you, focus on companies that do a considerable amount of business abroad. They benefit from a weak dollar as they repatriate their profits. Here are some to consider:

U.S. Companies with Foreign Focus
Company % Sales Foreign

Texas Instruments 88%
Intel 85%
Hewlett-Packard 69%
3M 64%
Procter & Gamble 60%
United Technologies 52%
Source: S&P

Economies are growing at 5%-10% in Asia and certain parts of Latin America, says Tim Seymour. That, combined with the weak dollar, makes me long-term bullish all the names listed above.

Out of all the stocks listed above I like Hewlett-Packard, says Guy Adami.

I like Intel, says Pete Najarian.


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Trader disclosure: On November 18th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Seymour Owns (POT), (NUE), (AAPL), (BAC), (EEM), (GE), (INTC), (FXI), (VIP); Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Finerman Owns (FLS); Finerman's Firm Owns (MSFT), (NOK), (PLCE), (TGT), (WMT), (DRI); Finerman's Firm Is Short (USO), (IJR), (MDY), (IWM), (UNG); Finerman's Firm And Finerman Own (WFC) Preferred; Finerman's Firm Owns (BAC) Preferred, (BAC), (BAC) Call Spreads; Finerman Owns (BAC) Preferred, (BAC); Finerman's Firm Owns (FLS), Is Short (FLS) Calls; Najarian Owns (DELL) Calls; Najarian Owns (EXPE) Calls; Najarian Owns (FXI) Call Spread; Najarian Owns (INTC) & (INTC) Calls; Najarian Owns (LAZ) & short (LAZ) Calls; Najarian Owns (MCD) Call Spread; Najarian Owns (RIMM) Call Spread; Najarian Owns (QLOGIC) Call Spread; Najarian Owns (TXN) & Short (TXN) Calls; Najarian Owns (YHOO) & (YHOO) Puts; Najarian Owns (BG) Call Spread; Najarian Owns (TXN) & (TXN) Call Spread

For Jon Najarian
J. Najarian Own (PALM)
J. Najarian Owns (ADS)

For Doug Kass
Kass Owns (BAC)

For Toni Sacconaghi
Sanford Bernstein Owns (DELL)
(DELL) Was A Client Of Bernstein In Past 12 Months
Sanford Bernstein Makes A Market In (DELL)


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