The August 21st gas attack in Syria has had far-reaching effects on global currency and oil prices. The uncertainty about U.S. action against Syria has caused a shift towards assets that are considered to be safer, such as gold and the Japanese yen. The U.S. dollar has taken a 0.7 percent fall, and the euro and Australian dollar fell in value over the last week as well. The biggest hit has been taken by the Turkish lira and the Indian rupee.
Brent crude oil hit a six month high, and U.S. crude oil prices have raised since the attack. Russia, the world’s largest oil supplier, has warned the U.S. not to infiltrate Syria. Russia is Syria’s ally, and U.S. involvement may mean retaliation from Russia. If the U.S. does decide to send troops to Syria, it may trigger an avalanche-style movement of stocks and high risk investments to more stable investments. This type of movement, on a global scale, could be a major set-back to America’s slowly improving economy. That’s just the residual effects of retaliation from Russia against the U.S. The full economic and sociological implications of no longer being on good terms with Russia could have a much more profound impact.