Watch the exchange rate

There was an annoucement today (Monday, 9/29/2008) about the Federal Reserve:

"The Fed announced it had expanded existing currency swap arrangements with other central banks by $US330 billion ($A398.67 billion) to $US620 billion ($A749.02 billion). The Fed also said it would increase the amount available via its term auction facility (TAF) by $US300 billion ($A362.43 billion) to $US450 billion ($A543.64 billion)."

I can't say I understand what it means, but it sounds pretty important to me. Does this increase the money supply? If so, wouldn't adding hundreds of billions of dollars reduce the value of the dollar? Remember, with a $10 Trillion federal debt, inflation is our mortal enemy.

I'm going to be watching the value of the dollar more than the stock market. If the dollar starts declining significantly in value, we're in trouble.

A link I found to track the dollar against the Euro is:
http://www.x-rates.com/d/USD/EUR/graph120.html