On Wednesday, the Indian rupee experienced a 42 paise depreciation, closing at 84.77 against the US dollar. This decline coincided with increased cross-border tensions following India’s military strikes on terrorist camps in Pakistan and Pakistan-Occupied Kashmir.
The operation, known as Operation Sindoor, targeted significant locations including the Jaish-e-Mohammad stronghold of Bahawalpur and the Lashkar-e-Taiba’s base in Muridke. These strikes were conducted in response to the recent Pahalgam attack that resulted in 26 civilian casualties.
Forex market analysts attributed the rupee’s depreciation to the geopolitical tensions, with the currency fluctuating between an intra-day high of 84.47 and a low of 84.93. Despite this, analysts forecast a potential upward trend in the rupee aided by FII inflows and a weaker dollar, amidst ongoing market volatility.
(With inputs from agencies.)
