I am not a currency trader. In fact, I have never bought currency. However, investors might consider diversifying their portfolio's by buying some international currencies. And while the Yen and the Euro are the first currencies that come to mind, I think its time to think about Canadian Dollar, the Indian Rupee, the Australian Dollar and even the South African Rand.

The common denominator between Canada, South Africa and Australia is that they are commodity based currencies. All three countries are rich in natural resources including gold, energy, uranium, iron, copper and other metals. One might make the case that these currencies have had a bit of run of recent. Indeed the Canadian dollar is actually at par with the US Dollar. The Indian Rupee, which was Rs. 49 to a dollar, is up 20% over the last few weeks to Rs. 39 to a dollar.

An easy way to play currency is to buy a currency share. FXC, for example, is your play on the Canadian dollar. It is up 17% in the last 6 months. FXA, the currency share for the Australian dollar, is up almost 14% since mid-August. As part of any diversified portfolio, its necessary to own stocks, bonds, currencies and cash. My money is on South Africa and on Canada with India being a riskier play. If you want to play, I recommend buying FXC at or under $100. Unfortunately, there is no easy way to play South Africa or India unless you open up a Forex trading account.

-- Faisal Laljee
Full Disclosure: I do not own any of the currencies mentioned above but my position can change anytime without notice.