Traders attributed the dollar's continued strength to flight-to-safety factors and negative sentiment just about everywhere else. With the global economy in a recession, and commodity prices falling or stagnant, investors are reluctant to deploy new capital into these segments -- preferring instead to park their money in safe investments. And, despite the United States' many financial and economic problems, U.S. Treasuries remain one of the safest -- if not the safest investment in the world.

Historically, gold has served as a safe-haven, as well, and gold has rallied this winter, but in this market gold is not a slam-dunk win for gold buyers. That's because gold likes an environment where prices are rising, or at least where some inflation exists. Conversely, if prices remain flat, or if the U.S. and global economies enter a period of deflation -- declining prices - - this will weigh on gold, as well - - a scenario that makes gold purchases at these levels, about $945, far from a sure-fire investment gain.

All in this together

Further, the dollar is also benefiting from a 'we're in the same boat' condition permeating the markets. It's not that the U.S. economy is fundamentally sound -- it isn't -- it's that comparable conditions in Europe and Asia aren't that much better. Hence, conditions that would normally create a weak dollar are being canceled-out, more-or-less, by conditions that are leading to a weak euro and pound.

The impact of dollar's rise on investors? You want the dollar to rise on the U.S. economy's strengths, not other nations' problems, but in this market you take what you can get: the dollar's strength protects, to a certain, the value of U.S. investments, and makes it less likely financial institutions will start pulling money out of the United States, due to its economic woes and bearish stock market. The dollar's strength also has lowered short-term interest rates for the U.S. government -- enabling the federal government to finance is huge deficit at interest rates lower than would be the case in normal market conditions. That represents a huge interest expense savings for the U.S. taxpayer.

For consumers, the stronger dollar means, among other things, your dollars will go further when you travel to Europe and/or when you buy imported goods sold in the United States.

But given the U.S.'s pronounced recession and economic uncertainty, it would be understandable to hear that the stronger dollar in Europe won't benefit U.S. citizens, due to a likely cut-back their international travel plans and purchases.

Forex Analysis: How fortunate the United States is, currency-speaking. No other nation in the world could run a record budget deficit, have its economy fall into a recession, and see its currency strengthen against the world's other major currencies. Further, after the U.S. economy's recovery is firmly in place, that's all the more reason for President Obama and Congress to cut the U.S. budget deficit and begin paying-down the national debt: the low-interest rate period won't last forever, hence the smaller the U.S. budget deficit is, the lower the U.S.'s interest costs will be when rates normalize.