With talks of the Feds probably going to lower the discount rate once again to help prevent the economy from going into recession, I’ve been trying to see how I can hedge against the dollar getting weaker.

Investing in gold and commodities is my current strategy. I’ve been wanting to start investing in foreign currency, specifically the Australian Dollar. I was doing some research and found that one way some people have been playing the currency market is through forex or by opening bank accounts through banks online such as Everbank.

However, the easiest way I’ve come across is to simply invest in Rydex’s ETF funds. The ETF funds seem to match the current currency exchange rates pretty closely. For example, as of right no, the Australian Dollar Trust (Symbol: FXA) is trading about $90.5, which is just about the exhange rate between the American dollar and the Australian dollar. Check out Rydex’s site for their other available ETFs to start hedging against a weak American dollar.

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