Why is the $$$ so weak?

Answer 1

The free market of supply and demand hold even for currencies. There is too much supply and not enough demand for the dollar.

Some of the reasons are listed by the first answerer.

If the economy were in good enough shape, interest rates could be higher which would spur demand for dollars and dollar based investments. Since interest rates are low, there is little demand. Since we are still trying to borrow a ton of money (due to budget deficits and financing a war), supply of dollar based debt is very high, driving down price (value of the dollar).

Having a weak dollar makes imports more expensive which should and can translate into less demand for imports and more demand for exports which should put the trade deficit in better proportion (although it has yet to happen and will be slow).

Hope that helped!

Answer 2

Two big reasons: (1) Trade deficit -- the U.S. imports more than it exports, and (2) Budget deficit -- we have way too many outstanding loans with other countries totaling over $8 trillion in total debt.