Really, this shit has been posted a shitload of times already. I remember you posting this chart a few times here, didn't you? But never mind, to make sense you should combine it with the growth in average hourly pay within the same time span. Then you would see the real, wages-adjusted value of the dollar, which has likely even increased due to technological improvements during the last 100 years.

Seriously, if you want to assess the dollar volatility, you should look at the USDX, the index which reflects the dollar strength against the basket of major currencies.