Dollar bear markets since 1971
Published 10 February 2026
Most Americans think about rent, eggs and insurance. They do not think about the US dollar. Yet the dollar sits behind all three.
It shapes what the US pays for imports and how easily inflation seeps into daily life. It shapes borrowing costs, because global capital prices American risk through the currency. And it shapes American power abroad, because the dollar still underpins much of the world's trade, finance and crisis management.
That is why dollar bear markets and corrections matter. They signal that a shift in all of the above is happening. Right now that repricing is occurring because the market is rethinking geopolitical and political risk to the dollar.
If the recent dollar correction pushes Treasury yields higher, the US will not be able to borrow as cheaply, and with today's debt load even a modest rise in rates can swell the interest bill fast.