Who gives a crap about the dollar?
Abstract: Not me!
People, the dollar is "weak". The dollar has fallen from around 1.32 to the Euro in March to around 1.48 today and from around 100 Yen to the dollar in April to around 89 Yen to the dollar today. In some quarters, this is cause for hand wringing and hysteria.
You know what? I don't care. In fact, I am kind of happy. We dealing with the end of a huge recession, with unemployment still rising. A cheaper dollar will encourage exports and help GDP growth. Plus, there are extremely liquid and thick forward and futures markets for the dollar. If fluctuations threaten your business, you can easily insure against them.
We were faced with a financial crisis and potential meltdown that many thought would rival the Great Depression. Unlike the Fed of the 1930s, the Bernanke Fed (eventually) responded with a battery of unprecedented policy actions that, to my mind, actually helped avert catastrophe. With vanishingly low interest rates here in the States, it is not really a surprise that the dollar is weak.
To those who lament the potential loss of status as an international reserve currency, I say "who cares"? Suppose the world's governments decided to hold Euros as reserves instead of dollars. The dollar would fall further in the short run and we would lose some seignorage revenues, but the world as we know it would not come to an end.
There are certainly reasons to be concerned about our growing national debt and what it might do to inflation down the road, especially given that the Bernanke Fed actually crossed into third world territory with its purchases of government debt during the crisis, but "what will it do the special international standing of the dollar" is not one of the reasons for concern in my book at least.