Threat of Syrian conflict boosts safe havens USD/JPY/CHF

Published: Tuesday, 27 August 2013 16:00 BST - Written by Ben Hughes

STORY LINK Threat of Syrian conflict boosts safe havens USD/JPY/CHF

The world’s safe haven currencies of the Swiss Franc, Japanese Yen and US Dollar have all been bolstered by the mounting market concern over the possibility that a US led coalition will declare war upon the Syrian regime led by Bashar al-Assad.

The calls for military action came after the release of footage showing Syrian civilians suffering the effects of chemical weapons. The distressing pictures ignited demand by the international community for action to be taken. As a result of the escalating tensions investors opted for safe haven currencies after the markets took a heavy hit.

Conflict looks increasingly likely after US secretary of state John Kerry said; “"What we saw in Syria last week should shock the conscience of the world. It defies any code of morality," Mr Kerry said at a news conference on Monday.

"Make no mistake, President Obama believes there must be accountability for those who would use the world's most heinous weapons against the world's most vulnerable people."

Oil prices have shot up by 2.7% after Syrian foreign Minister Walid al-Muallem warned that if the US does strike they will be surprised by the defences in place. Syria is “hearing the drums of war all around us,” Muallem said at a televised news conference in Damascus. The government hasn’t obstructed the United Nations probe into its alleged use of chemical weapons, he said, adding that the U.S. may be carrying out psychological warfare.

The Pound weakened by 0.66% against the Swiss Franc, 1.21% against the Yen and 0.26% against the US Dollar.

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