It's my estimation that this statement on the currency does violate the separation between church and state. Those who argue for it (at least on a Constitutional grounds) say that it's just a general theist statement, not an endorsement of a particular religion. That's how it gets past the prohibition of the First Amendment.
Considering that the vast majority of Americans are theists, including those on the Supreme Court, it's unlikely that this statement would be struck down as unconstitutional. In an ideal world, it might say something like "In the Constitution we trust," or "In law we trust."
But since it's not an ideal world, I'll go with the posters before me and say that I have bigger fish to fry.
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"If I cannot smoke cigars in heaven, I shall not go!"
- Mark Twain
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