Yesterday the Australian dollar tumbled around half a cent to 75.8 U.S. cents following the release of the minutes from the most recent Reserve Bank of Australia meeting.
But that could be just the beginning of greater declines according to one investment bank.
A report from Bloomberg reveals that Morgan Stanley expects the Australian dollar to fall as low as 64 U.S. cents by the end of next year.
Its analysts see the divergent monetary policies as being the trigger for the decline.
Whilst I may not be quite as bearish as Morgan Stanley, I do believe that the local currency is on a path to a sub-70 U.S. cents level.
This could make it an opportune time to snap up shares that are likely to benefit from a weaker Australian dollar.
Here are three to consider:
Ardent Leisure Group (ASX: AAD)
Whilst Ardent Leisure is best known for its embattled Dreamworld business, the majority of its earnings are generated by its highly profitable Main Event family entertainment business in the United States. Management has plans to grow the centre's footprint in the U.S. substantially over the next decade. This could make it a good buy and hold investment option.
Mantra Group Ltd (ASX: MTR)
I expect a weak currency will encourage high levels of inbound tourism into Australia, leading to increased demand for accommodation. Furthermore, a weak local currency will make it more expensive for Australian's to travel overseas. This could result in more consumers opting to holiday domestically, further boosting demand. While my preference is Mantra, I expect rival Event Hospitality and Entertainment Ltd (ASX: EVT) to benefit for the same reasons.