Well, the point of holding USD is that you have the ability to buy American things or to speculate (of others who do). Be it land, resources or most importantly, debt/bonds and perhaps stocks. What is happening is that people are valuing American shit more.
Look at American Dow market. Horrible eh? Then look at European. About the same news or worse. East European? More terrible. Asian/developing.. absolute disaster/1932 bottoms. Makes the Dow look pretty good.