Rupee Tumbles as Military Tensions Surge
The Indian rupee depreciated 31 paise against the US dollar following military strikes by India on terrorist camps in Pakistan and Pakistan-Occupied Kashmir. This escalation heightened tensions, impacting forex and equity markets, with the Reserve Bank of India poised to intervene and stabilize volatility.
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The rupee took a hit on Wednesday, depreciating by 31 paise to settle at 84.66 against the US dollar. This decline follows India's recent military actions targeting terrorist camps in Pakistan and Pakistan-Occupied Kashmir, which have intensified cross-border tensions.
The strikes, part of Operation Sindoor, saw Indian armed forces targeting nine key locations, including the strongholds of terror outfits Jaish-e-Mohammad and Lashkar-e-Taiba. This military response comes two weeks after a deadly attack in Pahalgam that claimed the lives of 26 civilians.
Forex markets reacted to the heightened conflict, with the Reserve Bank of India expected to step in to curb further depreciation. Meanwhile, the BSE Sensex and Nifty indexes also saw downturns amid these developments, as foreign institutional investors remained cautious.
(With inputs from agencies.)
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