I think the Dollar is benefiting from an oversold bounce and perceived problems in Euro-land which are overblown in comparison to the problems in the US.

Things go up things go down with sentiment but all the fiat currencies are in trouble now and gold will be the beneficiary.

If the US does get a recovery here then inflation and higher interest rates will be the next problem as all the parked money comes out of the t-bills and the US has even more trouble funding the debt.

On a side note China had trouble in their bond auction yesterday.

http://www.bloomberg.com/apps/news?pid=20601089&sid=a._DuMu6TXPg

If they cant sell their own maybe they will sell somebody else's bonds???