Dollar Bear

AAA

DEFINITION of 'Dollar Bear'

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 Bear'

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 ...
  2. Bear Position

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

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

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

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

    A measure of the value of the U.S. dollar relative to majority ...
Related Articles
  1. Forex Education

    Play Foreign Currencies Against The U.S. Dollar And Win

    Don't panic when the dollar drops. Learn to exploit the greenback's decline and profit from it.
  2. Forex

    What is the correlation between American stock prices and the value of the U.S. dollar?

    The correlation between any two variables (or sets of variables) summarizes a relationship, whether or not there is any real-world connection between the two variables. The correlation coefficient ...
  3. Forex Education

    Profiting From A Weak U.S. Dollar

    Learn how to allocate your investments when the U.S. dollar is down.
  4. Forex Education

    Gold: The Other Currency

    Throughout history, gold has held its value against paper currencies. Learn how it can help offset market risks.
  5. Forex Education

    Dollarization Explained

    Find out how fledgling economies can find some stability in their currency and attract foreign investment.
  6. Bonds & Fixed Income

    6 Factors That Influence Exchange Rates

    Find out how a currency's relative value reflects a country's economic health and impacts your investment returns.
  7. Forex Education

    3 Factors That Drive The U.S. Dollar

    We look at three important factors that affect U.S. dollar value, and how to determine when it's the right time to buy currency.
  8. Options & Futures

    How U.S. Firms Benefit When The Dollar Falls

    When the greenback is weak, smart investors will invest in multinational companies to benefit.
  9. Forex Strategies

    Are divergence trading strategies useful in forex trading?

    Use divergence indicators to identify market tops or bottoms, and find out how trading divergence strategies are used in forex trading.
  10. Charts & Patterns

    What is a common strategy traders implement when using the Elder-Ray Index?

    Read about the important buying and selling conditions that are recommended by Dr. Alexander Elder when using his Elder-Ray index.

You May Also Like

Hot Definitions
  1. Santa Claus Rally

    A surge in the price of stocks that often occurs in the week between Christmas and New Year's Day. There are numerous explanations ...
  2. Commodity

    1. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often ...
  3. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  4. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  5. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  6. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
Trading Center