The value of the US Dollar relative to other major currencies is a matter of national security. Because we have the world's reserve currency the government is able to play debasement games like QE and Twist. But ultimately the games have to be stopped lest gas prices for the war machine get too high.
Recent dollar weakness is a fake out, not a breakout. In case you haven't been watching the news lately, the Middle East is about to erupt and we have warships on the way to respond to the attack in Benghazi. To me World War 3 is not going to go down as a hyper-inflationary event where consumer demand is stimulated by Large-Scale Asset Purchases and pictures of US diplomats being murdered overseas.
Take a look at the long term dollar charts...
