This .pdf (accessible to laypersons) from the labor-backed Economic Policy Institute suggests that a falling dollar is probably very bad news for Europe.

The euro area is one of the slowest growing economic areas in the world, yet it will bear much of the burden of relieving the pressure of the U.S. trade deficits. This will deprive the euro area of demand for domestic products at a time when such demand is necessary to forestall a full-blown recession.

Via Marginal Revolution.
posted on Nov 28, 2004 - View this thread

Is the currency that oil is denominated in the real reason for the Iraq War? "The Federal Reserve's greatest nightmare is that OPEC will switch its international transactions from a dollar standard to a euro standard. Iraq actually made this switch in Nov. 2000 (when the euro was worth around 80 cents), and has actually made off like a bandit considering the dollar's steady depreciation against the euro. (Note: the dollar declined 17% against the euro in 2002.)"
posted on Feb 11, 2003 - View this thread