The era of slump in the exchange rate of US dollar to the world major currencies especially euro will have complicated implications on the global economy. As continuous uncontrolled fall in the US dollar on currency markets created its future chaos. The weak US dollar is now a hot topic across the economic globe and questions are starting to be asked about its role as the world’s dominant international reserve currency. There are several factors contributing to the devaluation of the dollar. US now having the status of world’s largest debtor and its dominant economy are owner of debt paradise with mounted debt of 53 trillion, the ever highest debt ratio in US history. In previous year, its total debt grown almost by 4.3 Trillion, comparatively which is 5.5 times larger than America’s GDP. Interests on foreign debt increased almost by 2.2 trillion. Business and financial sector debt piled by 7-11 per cent. During this comparative period, its core manufacturing base got reduced by 60 per cent. It’s over all trade performance resulted merchandise trade deficit of 815 billion in 2007 which established the 2nd largest negative trade balance in US history with additional cumulative trade deficits of 6.6 Trillion. Almost 80 per cent of US total debt 42 trillion was created since 1990. Status of benchmark economy of US for others is no more; the hidden strategy of US, to propagate the perception that the America is ultimate for the world’s peace and security similarly its economy is equally vital for the world economy is not acceptable any more. US dollar is under the storm of replacement, as it is gradually loosing its undisputed international trade currency charm. In the present paper, an attempt has been made to trace out the real implications and consequences of devaluation in U.S dollars and its relative impact on global economy. The paper reveals that the sharp decline in US economy is not all of sudden but it is due to political manipulation and inefficient economic control and artificial economic structure, which resulted to international business unrest. This paper also analyse the sharp down ward trends of US dollars and its impact on global economy. The study is based on the secondary data collected from various government records and published national and international document.