Dove

In trading and financial markets, dove refers to an individual or policy stance that favors lower interest rates and a more accommodative monetary policy with the aim of boosting economic growth and reducing unemployment. This term contrasts with hawk which advocates for higher interest rates to combat inflation.

Lower interest rates typically discourage saving and encourage investors to shift their money into riskier assets. This can have a positive effect on the equities within an economy, but also a negative one on the government bonds, making them less attractive to foreign investors. This reduces demand for the country’s currency and can cause the currency to fall.