The dollar clearly is in a bear market, but all is not lost. Short-term signs are starting to build a case for a rebound.

The assault on the U.S. dollar has investors looking to hedge exposure to further weakening in the worldâ??s reserve currency, and some are turning to exchange-traded funds for support.

Specialized exchange-traded funds to guard portfolios against inflation are capturing attention in light of massive government spending to combat the economic recession and the prospect of a weaker U.S dollar.

As investors seek out strategies to limit downside risk, they often find themselves in alternative asset classes. One over looked asset is currency.

Investors who are apprehensive about the governmentâ??s bailout spending can choose from an assortment of exchange-traded funds and notes designed to hedge inflation. Here are some of your better options: