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.

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.