American dollar?

Why is the American dollar weakening? What factors in the economy can make the dollar comparable to the Euro?

Let me give this my best shot.

The persistent trade deficit combined with the federal budget deficit can cause the dollar to weaken. The US is importing more than we're exporting, which means that we're needing to sell dollars on the foreign exchange market to purchase goods in whatever currency the foreign companies use (i.e. sony's only going to accept Yen in exchange for PS3's, even if we pay them in dollars, they're going to convert the dollars to Yen so they can pay their taxes and purchase materials etc).

This abundant supply of USD (US dollars) in the foreign exchange market is making each dollar cheaper in relative terms compared to other currencies.

A trade surplus against the EU, or a higher interest rate in the US than in the EU, will lead to strengthening of the dollar vs euro.

Addendum: The US government backs the US dollar, and the government is backed by the US economy, still by far the strongest economy in the world. The fact that foreigners are willing to accept securities (promises) in exchange for real actual physical goods means that they have faith in our economy and our ability to pay them back. They think investing in the US is a good idea. It is unlikely they will dump all of the securities at once, as that would cause the remainder of their securities to become worth much less. Large portions of other countries' reserves (what they back their own currencies with) is made up of USD. The reason for this is that of the major hard currencies (USD, Yen, Euro, Pound), the Japanese have outright said they don't want their currency used as a reserve currency, the Euro is unproven, and the Pound has a history of volatility. This means that really the only currency left is US dollars. True, combined the EU has a larger economy than the USA, but the USA is considered to be much more politically stable, and that translates to its currency. Because of these factors, it's unlikely any markets will be going over to the Euro anytime soon.
The dollar is weakening because it's a fiat currency. There is nothing to back the dollar other than the gubmint, which ain't much. Our currency is owned lock stock and barrel by foreign investors who, when they feel like, can dump our bonds on the open market. The only thing supporting the dollar right now is foreign markets. Oil and other commodities are based on the dollar as well. Once those are converted to the euro the dollar will weaken further. I'm not sure what factors will make it comparable to the Euro since the euro is a multinational based currency.
Because Americans are weakening
Hard Work is the only factor that is missing, which can make the dollar comparable to the Euro.

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