The dollar stages impressive rally versus the euro 1.60-1.39

The dollar has staged an impressive rally from July 15th to September 11, going from1.60 to dipping below 1.39.  The performance was not indicative of a better economic situation, quite the opposite.  This bullish dollar move was a result of growing evidence of global weakness.  The crisis is not limited to the United States.  It is evident that the economic woes will be global and this helps the U.S. dollar.  When compared to other countries, investors are more confident in that the U.S. could withstand financial stress and the refuge investment becomes the U.S. dollar and the U.S-backed treasury bonds.  The United States is more flexible than Europe when it comes to adopting measures that will get it out of the crisis.  The euro/dollar reflected this sentiment.