The Dollar Is Plunging. 3 Stock Sectors to Buy Now as Fear Takes Hold

The US dollar’s historic decline in April 2025—plunging to its lowest level since March 2022—has sent shockwaves through global markets. The US Dollar Index (DXY) fell below 99 by mid-April, driven by escalating trade tensions, Federal Reserve policy uncertainty, and a flight to safer havens. For investors, this volatility presents a critical opportunity: sectors that thrive in a weakening dollar environment are primed for gains. Here are three areas to prioritize.

1. Energy Stocks: Fueling Profits in a Volatile Landscape

A weaker dollar typically boosts energy prices, as oil and gas are priced in USD. With global trade tensions spiking inflation fears, commodities like crude oil and natural gas have become a hedge against currency devaluation.

The reveals a stark divergence: energy stocks surged 22% year-to-date through April, outpacing the broader market’s flat performance. This trend is likely to persist as trade wars disrupt supply chains and drive energy demand.

Key plays:
- Integrated majors like Chevron (CVX) and Exxon Mobil (XOM), which benefit from rising crude prices.
- Exploration and production firms such as Pioneer Natural Resources (PXD), which leverage high commodity prices.

2. Precious Metals: The Ultimate Safe Haven

Gold and silver have long been inversely correlated with the dollar, and their appeal has intensified as geopolitical risks mount. The research highlights gold’s April 3 spike to $3,167.57 per ounce—a 15% year-to-date gain—as investors fled to hard assets.

shows a near-perfect inverse relationship: every 1% drop in the DXY correlates with a $30 rise in gold.

Key plays:
- Gold miners like Newmont (NEM) and Barrick Gold (GOLD), which stand to profit from higher metal prices.
- ETFs such as SPDR Gold Shares (GLD) for direct exposure to bullion.

3. International Equities: Capitalizing on Currency Gains

A weaker dollar makes foreign assets cheaper for US investors. Emerging markets, in particular, could see capital inflows as the USD’s safe-haven status wanes. The euro’s rise to $1.138 by mid-April—its highest level in 2025—signals broader opportunities in Europe, where companies like Germany’s industrial giants benefit from a stronger local currency.

shows the index climbing 14% while the DXY fell 5%. Sectors like technology and consumer discretionary in Asia and Europe are poised for gains.

Key plays:
- Regional ETFs such as iShares MSCI Emerging Markets (EEM) or Vanguard FTSE Europe (VGK).
- Companies with global revenue streams, like Microsoft (MSFT) or Nestlé (NESN), which gain from currency translations.

Conclusion: Positioning for a Post-Dollar World

The dollar’s decline isn’t just a short-term blip—it reflects structural shifts in global trade and monetary policy. With the DXY trading near two standard deviations below its 50-year average and the Fed’s hesitant rate cuts, the greenback’s weakness could linger.

Investors should act decisively: energy stocks, precious metals, and international equities are all positioned to capitalize on this environment. Historical precedent suggests that during periods of dollar weakness (e.g., 2017–2018), energy outperformed the S&P 500 by 40%, gold rose 15% annually, and emerging markets gained 25%.

However, risks remain. A sudden truce in US-China trade wars or a Fed pivot to aggressive rate hikes could reverse the trend. Yet with the IMF projecting US economic growth at 2.7% in 2025—outpacing a stagnating eurozone and deflationary China—the dollar’s long-term decline may be inevitable.

For now, the writing is on the wall: fear is driving capital toward sectors that benefit from a weaker USD. Investors who act swiftly stand to gain.

Data as of April 2025. Past performance does not guarantee future results.