[Benjamin]

"I am not sure it's foreigners trusting the dollar as much as it is American money coming home ," says T.J. Marta, a fixed-income strategist at RBC Capital Markets in New York.

The rally may be a result of U.S.-based hedge funds liquidating positions held in foreign stock markets and repatriating the cash to dollar-based accounts , rather than cash-rich foreigners making a proactive choice in favor of the greenback, he explains.

Marta also notes that it wasn't that long ago when economists were speculating that the global economy wasn't as linked to the fate of the U.S. as it once was.

The G7 statement dashed the hopes of some European policy makers that the group would say something to stop the slide in the dollar against the euro.
"This suggests that despite growing concerns among some members of the euro zone about the recent U.S. dollar decline, there is no consensus among the G7 that this is either a problem or that anything should or can be done about it," said analysts from Barclays Capital.

Many analysts suggested the lack of G7 mention signaled a "green light" to push the dollar lower.