As concerns about Dubai's unstable and troubled financial situations grow and grip the whole world, stocks in Australia fell almost 3%, pulling down market value by $38 Billion. The country's benchmark exchange S&P/ASX200 slipped 136.5 points, or 2.9%, to stand at a new low of 4571.1.

The broader index All Ordinaries fell 130.4 points, 0r 2.76%, to 4597.2.

The recorded falls on both the exchanges has been the biggest single day slip since June 23. The country's currency also dropped US2 cents, after investors preferred to stay away due to growing fears about Dubai's announcement that it will not be able to pay back its billions of dollars worth of debt anytime soon.

"The Aussie has really fallen out of favor today as portfolio positions are being unwound in light of the events from Dubai last night. Aussie wasn't the only one to fall. The Kiwi was also battered and the euro was sold off as well", shared CMC Markets Foreign Exchange dealer Tim Waterer.

Stocks across Europe and Asia have already borne the brunt of Dubai's distressing announcement, as stocks in markets across both continents continued to fall for over 2 consecutive days. Despite trying to stay optimistic, economists and analysts around the world fear that the drop will continue till stability is achieved again.