The Dollar recovered some value starting Thursday, passing 0.80 €. Today it is approaching the 0.81 € mark. There are a number of reasons for this. The Euro had come within almost 1 US cent of the "pain threshold" of $1.30 (roughly 0.77 €), and European goverments were making intervention noises. Some good US economic news also helped, including solid corporate earnings, inventory declines, and consumer confidence. The bank of Japan also intervened to prop up the Dollar vs. the Yen.
In the short-run at least, this stabilizes the currency situation, and hence the ability of the US to sell debt at low interest rates.
The market is obviously showing volatility, so I'll be following this closely.