Mark Mobius, executive chairman of Templeton Emerging Markets group, said on Sunday he sees a high degree of uncertainty and volatility in financial markets in the wake of Standard & Poor's decision to downgrade the U.S. credit rating.
Mobius warned that the U.S. dollar's role as an anchor to the global investor community is deteriorating and said emerging market currencies and stocks could become safe havens.
"The initial reaction will be a high degree of uncertainty and thus volatility since investors will not know where to turn for safety," said Mobius, whose unit oversees $50 billion in emerging market assets.
"During the sub-prime crisis, safety was in U.S. dollars and U.S. Treasurys. Now that anchor to the global community is deteriorating," he said in an email to Reuters.
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