Hedging currency risk

[kika]

the dollar has been world's major reserve currency for many years now. Yet, it has been devaluating more and more during the last few years. Since most markets people prefer to invest in are denominated in US dollars, how would you hedge your currency risk in a devaluating dollar environment?

[ChaosTheory]

if you are a US resident and use USD to purchase goods and services(in other words, if your living expenses are in USD), you don't have to worry about currency risk. You should worry about a decline in purchasing power i.e. inflation

[ProTrader]

to hedge currency risk, you could buy a basket of currencies. That would diversify things a bit.

[kika]

building a diversified portfolio of currencies makes sense for me, even though I'm a US resident, so that would really only add an additional layer of diversification to my investments.