Dollar Bear

A A A

DEFINITION

An investor or speculator who is negative on the outlook for the U.S. dollar against other currencies. A dollar bear expects the U.S. dollar to decline against major currencies over time, and will take this factor into consideration when positioning investment portfolios.

INVESTOPEDIA EXPLAINS

Dollar bears generally possess a gloomy outlook on the long-term prospects for the U.S. economy.They will bet against the dollar in general or specifically in relation to another currency. For example they could go long the EUR/USD pair because as the pair increases it signifies that the USD is worth less. Since the U.S. dollar has a strong negative correlation with precious metals and commodities, a dollar bear may overweight investment portfolios in assets such as gold and base metals as a hedge against a continued decline in the greenback.


RELATED TERMS
  1. Search Theory

    A study of buyers and sellers who cannot instantly find a commerce partner. ...
  2. Bear Position

    Alternate term for a short position in a financial security. A bear position ...
  3. Dollarization

    A situation where the citizens of a country officially or unofficially use a ...
  4. Bear

    An investor who believes that a particular security or market is headed downward. ...
  5. Trade-Weighted Dollar

    A measurement of the foreign exchange value of the U.S. dollar compared against ...
  6. U.S. Dollar Index - USDX

    A measure of the value of the U.S. dollar relative to majority of its most significant ...
  7. USD (United States Dollar)

    The currency abbreviation for the United States dollar (USD), the currency for ...
  8. Forex Spread Betting

    A category of spread betting that involves taking a bet on the price movement ...
  9. Bear Fund

    A mutual fund designed to provide higher returns when the market declines in ...
  10. WM/Reuters Benchmark Rates

    Spot and forward foreign exchange rates that are used as standard rates for ...
Related Articles
  1. Play Foreign Currencies Against The ...
    Forex Education

    Play Foreign Currencies Against The ...

  2. What is the correlation between American ...
    Forex

    What is the correlation between American ...

  3. Profiting From A Weak U.S. Dollar
    Forex Education

    Profiting From A Weak U.S. Dollar

  4. Gold: The Other Currency
    Forex Education

    Gold: The Other Currency

  5. Dollarization Explained
    Forex Education

    Dollarization Explained

  6. 6 Factors That Influence Exchange Rates
    Bonds & Fixed Income

    6 Factors That Influence Exchange Rates

  7. 3 Factors That Drive The U.S. Dollar
    Forex Education

    3 Factors That Drive The U.S. Dollar

  8. How U.S. Firms Benefit When The Dollar ...
    Options & Futures

    How U.S. Firms Benefit When The Dollar ...

  9. Three Investing Lessons from the Napa ...
    Investing Basics

    Three Investing Lessons from the Napa ...

  10. Getting On The Right Side Of The P/E ...
    Fundamental Analysis

    Getting On The Right Side Of The P/E ...

comments powered by Disqus
Hot Definitions
  1. Amplitude

    The difference in price from the midpoint of a trough to the midpoint of a peak of a security. Amplitude is positive when calculating a bullish retracement (when calculating from trough to peak) and negative when calculating a bearish retracement (when calculating from peak to trough).
  2. Ascending Triangle

    A bullish chart pattern used in technical analysis that is easily recognizable by the distinct shape created by two trendlines. In an ascending triangle, one trendline is drawn horizontally at a level that has historically prevented the price from heading higher, while the second trendline connects a series of increasing troughs.
  3. National Best Bid and Offer - NBBO

    A term applying to the SEC requirement that brokers must guarantee customers the best available ask price when they buy securities and the best available bid price when they sell securities.
  4. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin account. In the context of the NYSE and FINRA, after an investor has bought securities on margin, the minimum required level of margin is 25% of the total market value of the securities in the margin account.
  5. Leased Bank Guarantee

    A bank guarantee that is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer looking to secure a bank guarantee, then lease a guarantee to that customer for a set amount of money and over a set period of time, typically less than two years.
  6. Degree Of Financial Leverage - DFL

    A ratio that measures the sensitivity of a company’s earnings per share (EPS) to fluctuations in its operating income, as a result of changes in its capital structure. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in earnings before interest and taxes (EBIT).
Trading Center