"The simplest way to gain from a weakening dollar is to exchange dollars for euros, euro-denominated traveler checks or another currency of choice. The investor would then receive whatever gain that currency posts against the dollar. But there would be no other return -- the equivalent of putting your money in a foreign mattress." CNN/Money

"The case for buying foreign stocks has less to do with the shrinking dollar and more with the fundamental forces behind its decline. In many countries, the economy is growing far faster than the paltry 3 percent annual growth we're now logging in the United States. Markets in places like China and India aren't simply "emerging." They're rapidly joining-and even overtaking-the developed world as their production and consumption surge and their populations become more prosperous." US News

"Americans generally don't like the word "weak" attached to anything we do. So how do we to interpret what the weak U.S. dollar may mean for investors? Consider investing in companies that have significant overseas sales operations that can take advantage of the currency valuation differences. Look at domestic manufacturers that may become more competitive. The falling dollar is not going to bring back the industrial economy, but it may push some marginally profitable companies into the black again. If you are holding a handful of low-interest bonds, come up with a game plan that envisions rising interest rates. How are you going to adjust? If you are really concerned about the future of the economy and the market, look to gold. Gold has historically been the refuge during time of economic upheaval, but it's value has also dropped dramatically in different circumstances. Only a small part of your holdings should be in gold." About.com

Portfolio Diversification Can Combat Inflation and A Weak Dollar

"With higher prices on almost everything imported from abroad. As our currency loses value, a dollar buys less and less from manufacturers in other countries. Because the euro has been so strong, this effect is especially pronounced when it comes to European imports: All things equal, a pair of eyeglass frames from a European designer that cost about 150 euros-or $192-last September would now go for $211 because of the soft dollar. This puts foreign businesses at risk of losing American customers to domestic competitors; some end up lowering their prices-and losing profits-as a result. But those businesses still need to make up for the shortfall, so they cut back in other ways. A carmaker like Audi or Volkswagen, for example, might start offering fewer models in the United States or stripping some bells and whistles from its vehicles. The weak dollar can hurt you even if you stick to buying American. Domestic manufacturers can start to raise their own prices, once the cost of European products starts to go up. The euro sticker shock also applies to American-made products that come from European raw materials, like J. Crew's cashmere sweaters or Cole Haan shoes made from Italian leather. Slate

The Weak Dollar - More Investment Strategies