The history of the U.S. dollar is a long and interesting one. Since the 1800s, the dollar has gradually become an international currency sought after by the international reserves of central banks and governments. Sparked by a formal agreement after WWII known as the Bretton Woods System, the U.S. dollar was placed on a pedestal by the international financial system. As time progressed into the sixties and seventies, this system imploded due to the fiscal growth of other countries and an increase in deficits in the US. However, the dollar continued to reign supreme with "reserve-currency status" amongst a group of underperforming currencies worldwide. In the mid 90's, the Federal Reserve Bank was forced to intervene in the currency markets and strengthen the dollar because of its troubling weakness at the time. In recent years, the strength of the U.S. dollar has given ground to other currencies like the Euro and Yen, but still serves as a key barometer of our nation's economic and financial health. The dollar typically gains strength on negative economic news, as investors tend to avoid assets that depend on economic growth and seek the safe haven in the greenback. With the disappointing U.S. consumer data presented last week, this trend surprisingly did not occur. With the Federal Reserve Bank pumping more money into our struggling economy, the dollar has become so soft, that investors appear to be losing the faith they once had in this financial security blanket.