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A weak dollar is weak for a reason.
Very few people understand the hows and whys of the Foreign Exchange Market. I've dabbled in it--online Forex trading companies set you up with "pretend money" accounts for free, and I've lost a pretend fortune trading the Forex. So I'm no good at it, but I understand in principle how it works.
The Foreign Exchange Market is a market, just like the stock market. Just like the buying and selling activity on say MSFT on the NYSE sets Microsoft's share price, so the buying and selling activity on say USD/CAN on the Forex sets the price of the US Dollar in terms of Canadian Dollar.
The dollar loses value against other currencies (and it's ALWAYS measured in terms of another currency. There can't be an arbitrarily weak currency in a vacuum.) when traders are actively selling and the currency pair is bearish--trending down.
Currency traders do this for a living--they're constantly studying economic indicators and trends, and their WHOLE JOB is to be ahead of economic and market moves. I trust them a lot more than some economist sitting in an office or rearing his head on MSNBC. And currency traders are communicating by way of the price they're setting on USD/* that the US economy is in sorry shape and likely to head sorrier.
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