The Federal Reserve’s decision this month to lower its benchmark rate by 25 basis points, bringing the federal funds range to 4.00–4.25%, has gently weakened the US dollar.

This isn’t a dramatic shift, yet in currency markets even a modest policy change carries weight. For investors, the softer greenback opens a series of opportunities across equities, commodities, fixed income and foreign exchange that deserve attention.

A weaker dollar typically provides an immediate lift to international equities. When the greenback declines, profits earned in other currencies translate into more dollars, improving reported results for American investors and for US multinationals with significant overseas sales.

History teaches us that emerging-market equities often outperform during periods of moderate dollar weakness. Economies such as India, Indonesia and Mexico, with strong domestic demand and improving fiscal balances, are particularly well placed to benefit as their currencies appreciate.

The effect is equally important for commodities. Gold, silver, copper, oil and other key raw materials are priced in dollars. When the dollar softens, these commodities become more affordable to buyers using other currencies, typically pushing prices higher.

This creates opportunities both in the physical metals and in the companies that produce them. Copper, nickel and rare earths, which are critical to renewable energy projects and to the AI-driven build-out of global data centres, are especially attractive in this environment. Miners and energy firms operating in resource-rich regions can see profit margins expand when their local costs remain stable and selling prices rise in dollar terms.

US-based multinationals stand to gain as well. Tech giants, consumer brands and pharmaceutical firms with large overseas revenue streams enjoy a translation boost when profits are repatriated.

These companies are already benefiting from the ongoing wave of artificial-intelligence investment that demands advanced chips and vast data-centre capacity. A slightly weaker dollar amplifies those earnings and supports share valuations.

The softer currency also reshapes the fixed-income landscape. Lower US yields reduce the dollar’s yield advantage and encourage capital to flow toward higher-yielding sovereign bonds elsewhere.

Nations with credible monetary policies and attractive real rates, from Brazil to parts of Southeast Asia, offer opportunities for investors seeking income and diversification. Global bond funds with active currency management can capture this “carry” while limiting exposure to sudden market swings.

Foreign exchange markets themselves offer direct plays. Investors comfortable with currency exposure can consider selective positions in units poised to strengthen if the dollar drifts lower.

The euro, several Asian currencies, and commodity-linked dollars such as the Australian and Canadian typically perform well when global trade is resilient and US rates edge down.

For many investors, diversified international equity or bond funds with built-in currency exposure provide a simpler route without the need to trade FX directly.

It’s essential, however, to view these opportunities with nuance. The dollar remains the world’s primary reserve currency and the ultimate safe haven in times of stress.

A strong batch of US economic data, renewed inflationary pressure, or sudden geopolitical tension could quickly stabilize or even lift the greenback. This is why this is not a call for aggressive bets against the currency but rather an invitation to broaden portfolios and capture the benefits of a period of modest dollar softness.

Practical steps follow from that stance.

First, investors can increase exposure to quality emerging-market equities, particularly those with improving balance sheets and rising domestic consumption.

Second, they might add commodities and resource producers poised to gain from stronger global demand and ongoing energy transition projects.

Third, investors can consider global bond funds or individual sovereign issues offering attractive real yields, using hedging strategies to manage currency risk if necessary.

The current backdrop supports this diversified approach. Global trade remains surprisingly firm despite mixed industrial data, helped by a powerful investment cycle in artificial intelligence infrastructure that is capital-intensive but not labor-heavy.

With the Fed now less aggressive on rates and other major central banks also easing, the interest-rate gap that supported the dollar through 2023 and 2024 has narrowed.

These conditions favour a gentle, orderly decline rather than a sharp fall, which is precisely the environment in which internationally diversified portfolios thrive.

Investors should also keep an eye on sectors that benefit indirectly from a softer dollar. Shipping companies, logistics providers, and firms tied to commodity supply chains often enjoy improved pricing power when global trade strengthens. Energy producers—both traditional and renewable—may see greater demand as input costs adjust. Even US exporters in manufacturing and agriculture gain competitiveness when their goods are cheaper in foreign-currency terms.

It's my belief that the Fed’s September rate cut has altered the currency landscape just enough to create meaningful opportunities.

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London-born Nigel Green is founder and CEO of deVere Group. Following in his father’s footsteps, he entered the financial services industry as a young adult. After working in the sector for 15 years in London, he subsequently spent several years operating within the international space, before launching deVere in 2002 with a single office in Hong Kong. Today, deVere is one of the world’s largest independent financial advisory organizations, doing business in 100 countries and with more than $12bn under advisement. It specializes global financial solutions to international, local mass affluent, and high-net-worth clients. In early 2017, it was announced that deVere would launch its own private bank. In addition, deVere also confirmed it has received its own investment banking license.