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Do you know what currencies are pegged to? Market value. With the exception of China (and probably a few others), who manipulates their currency unfairly, nations are at the mercy of what markets will pay for their currency. The U.S. "simply" doesn't print money to repay debts because that would further devalue the Greenback, which is something they want to avoid. The current value isn't all bad. The depressed value makes it easier for domestic U.S. companies to export to those who would take advantage of a higher purchasing power for American goods.
Generally, most nations don't necessarily want a "high" or "low" value for their currency; what they want is a value they can manage. They want a stable value, rather than volatility. They want to influence the money supply when they strive for certain goals.
The quantitative easing isn't illogical; it's merely risky. The hope is to bolster the stock markets, which essentially infuses an economy with needed cash to produce and expand. The risk is devaluing the currency without that effect.
Economics is tough. In a way it's like trying to herd cats.
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Knowing that death is certain and that the time of death is uncertain, what's the most important thing?
—Bhikkhuni Pema Chödrön
Humankind cannot bear very much reality.
—From "Burnt Norton," Four Quartets (1936), T. S. Eliot
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