Uncertainty about the possibility of Western military action against the Syrian government hit shares worldwide on Tuesday, sent many emerging market currencies to record lows and boosted assets such as yen and gold.
Dealers said the moves so far, spurred by reports from Washington that a strike may be imminent, were not yet on a huge scale as investors are waiting to see how the situation unfolds.
U.S. Secretary of State John Kerry said Obama was consulting with allies before he decides on any retaliatory strike. While Britain's Prime Minister David Cameron added to the growing sense of imminent action by recalling the country's parliamentarians from their summer break.
The Indian rupee lost as much as 2.5 percent to reach record low of 65.93 per dollar while Turkey's lira weakened to 2.03 to the dollar - both were record lows. Turkey's share index .XU100also slid to a year
low.
Dealers said the moves so far, spurred by reports from Washington that a strike may be imminent, were not yet on a huge scale as investors are waiting to see how the situation unfolds.
U.S. Secretary of State John Kerry said Obama was consulting with allies before he decides on any retaliatory strike. While Britain's Prime Minister David Cameron added to the growing sense of imminent action by recalling the country's parliamentarians from their summer break.
The Indian rupee lost as much as 2.5 percent to reach record low of 65.93 per dollar while Turkey's lira weakened to 2.03 to the dollar - both were record lows. Turkey's share index .XU100also slid to a year
low.
European shares were down 1.2 percent by midday, matching an earlier drop across Asian markets outside Japan . Tokyo's Nikkei 225 ended 0.7 percent lower.
That left the MSCI all-country world equity index down around 0.5 percent for a second day of falls, though it remains off its lows for the month.
Russia, which as the world's top energy producer normally benefits from stronger oil prices, saw the rouble hit a four-year low against the dollar-euro basket, on concern over the situation in Syria.
As Syria's key ally and arms supplier, Russia has urged Washington not to use military force against President Bashar al-Assad's government. Traders said its response to any U.S. move against Syria would be key to whether the current shift into safer assets turned into a major flood.
Spot gold rose to its highest since early June around $1,420 an ounce. Gold has rallied more than $200 since late June when prices troughed at three-year lows.
Source: Reuters
