As the dollar continues to take a beating in global markets, many investors are taking advantage of foreign currencies to bolster the value of the U.S. money in their portfolios, according to a new MarketWatch article.

"Foreign-currency investing has been chiefly the domain of sophisticated professional traders, hedge funds and institutional investors. But now individuals are hearing more about it, thanks to a growing number of mutual funds and exchange-traded funds specializing in currency investing,” the news service reports.

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Electronic currency trading has blossomed into a $2 trillion-per-day market, and new technology has made it easier for investors to get involved – so currency trading volume is set to skyrocket even more than it already has.

MarketWatch cites Arijit Dutta, a mutual fund analyst at investment researcher for Morningstar Inc., who says that inclusion of some non-dollar assets in one’s portfolio is excellent insurance against dollar weakness.

"As pressure on the dollar erodes Americans' purchasing power, non-U.S. investments offset this drop, because profits from foreign currency, stocks and bonds are worth more in dollar terms,” the article says.

And exchange-rate fluctuations are generally not under the same influences as stocks and bonds, meaning that foreign currencies are an excellent way to diversify and limit the risks related to global investment. While international stock funds provide exposure to foreign currencies, the article suggests that currency funds are a more direct route.

"ETF provider Rydex Investments introduced the Euro Currency Trust in December. Rydex in June unveiled six more currency ETFs designed to mimic the daily price of British pound sterling, the Australian dollar, Canadian dollar, Mexican peso, Swedish krona and Swiss franc.”

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