The US dollar can weaken but still remain the world's reserve currency

As a hegemon, the US no longer derives its hegemonic powers from manufacturing and goods

One puzzling aspect of the massive volatility over the past few weeks has been that US safe haven assets, namely the US dollar (USD) and Treasuries, have not exhibited typical risk-off behaviour. Instead of investors flocking to buy US Treasuries and remain invested in the USD, both asset classes have actually weakened. Other safe haven assets like the Swiss franc and the yen have seen the usual flight-to-safety bid, but why have the USD and Treasuries lagged?

 

The weakness in US Treasuries is linked to the precarious fiscal position of the US, the possibility of dumping of Treasuries by global