Asian session: The yen held its biggest gains in 2 1/2 months

01:30 Australia Construction Work Done Quarter II -2.0% +1.1% -0.3%

The yen held its biggest gains in 2 1/2 months against the dollar and euro as traders sought haven investments amid escalating tension in Syria. President Barack Obama’s administration is working with allies including the U.K. and France to reach agreement on limited action against Syria after concluding that Assad’s regime used chemical weapons against civilians. Any armed response would be narrowly focused on Syria’s weapons capabilities and wouldn’t be aimed at deposing Syrian President Bashar al-Assad, U.S. and U.K. officials said.

Japan’s currency reached its strongest level in two weeks against the greenback, and the Swiss franc touched the highest in a week.

Turkey’s lira and India’s rupee both dropped to record lows as global stocks slumped.

The pound was near a three-week low against the euro ahead of a speech by Bank of England Governor Mark Carney today. In the U.K., Carney gives his first policy speech since taking over as BOE Governor on July 1. He introduced so-called forward guidance this month to prevent a pickup in borrowing costs from undermining the economic recovery. Investors pushed benchmark gilt yields to a two-year high last week. The central bank’s Monetary Policy Committee meets on Sept. 5, the same day as the European Central Bank.

EUR / USD: during the Asian session the pair fell to $ 1.3370

GBP / USD: during the Asian session the pair fell below $ 1.5520

USD / JPY: during the Asian session the pair rose to Y97.40

BOE Carney due to speak today at 1045GMT (speech, press conf. 1145GMT) with market expecting dovish comments linked to forward guidance.