The dollar's sharp decline is a good thing for some long-suffering companies.
Resource companies are those expected to benefit from the decline because they earn much of their revenue in US dollars, while their costs are largely denominated in Australian dollars.
Among companies expected to receive the biggest benefit are Atlas Iron, Alumina, and Yancoal, according to Credit Suisse. But Fortescue Metals, BHP Billiton, and Rio Tinto are among those that receive the least benefit.
But it is not just mining companies that will welcome a weaker currency. BlueScope Steel says a 1 per cent fall in the dollar will lead to a $2 million upward adjustment in earnings before interest and tax. "A US105¢ to US95¢ decline would have led to a $20 million EBIT benefit to the company," a spokesman said.
Watermark Funds Management director Justin Braitling said fund managers were becoming concerned about a recession next year, and this would make it "very tough" for cyclical industrial stocks.