What is to short the dollar?

Answer 1

To short the dollar means to bet against the U.S. dollar, anticipating that its value will decline relative to other currencies or assets. Investors can do this through various financial instruments, such as currency futures, options, or by selling dollar-denominated assets and buying foreign currencies. Shorting the dollar can be motivated by factors like expected economic downturns, changes in interest rates, or geopolitical events that could weaken the dollar's position. If the dollar does indeed decrease in value, the investor can profit from the difference.