Operation Sindoor impact on Indian rupee : The Indian rupee fell 31 paise to 84.66 against the US dollar during early trading on Wednesday, following India's military actions against terrorist facilities in Pakistan and Pakistan-Occupied Kashmir, which heightened border tensions.
The Indian armed forces launched missile strikes on nine terrorist targets, including the Jaish-e-Mohammad centre in Bahawalpur and Lashkar-e-Taiba's facility in Muridke.
These military operations, conducted under Operation Sindoor , came two weeks after the Pahalgam incident that resulted in 26 civilian killings.
Currency market specialists noted that these military actions against terrorist facilities have drawn attention to the potential conflict escalation impact on the rupee.
Also Check | Operation Sindoor Live Updates
The domestic currency began trading at 84.65 and subsequently dropped to 84.66 against the dollar at the interbank foreign exchange, showing a decline of 31 paise from its previous closing value.
On Tuesday, the rupee closed at 84.35 against the US dollar, down by 5 paise, amidst increasing uncertainty and careful risk assessment.
"Whilst speculators and worried importers might purchase dollars, we anticipate the Reserve Bank of India (RBI) will intervene to prevent any significant rupee decline," stated Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.
Bhansali added, "We expect there could be some selling by FII in the equity markets though that could be subdued as they would want to wait for further news of escalation to filter down."
"Markets today are likely to be nervous and a bit volatile, but as we said earlier, it would depend on RBI to control the market volatility and they will determine where the rupee ends today."
The dollar index, measuring the US currency against six major currencies, increased by 0.30 per cent to 99.53.
Brent crude futures traded higher by 0.68 per cent at USD 62.57 per barrel.
The Indian armed forces launched missile strikes on nine terrorist targets, including the Jaish-e-Mohammad centre in Bahawalpur and Lashkar-e-Taiba's facility in Muridke.
These military operations, conducted under Operation Sindoor , came two weeks after the Pahalgam incident that resulted in 26 civilian killings.
Currency market specialists noted that these military actions against terrorist facilities have drawn attention to the potential conflict escalation impact on the rupee.
Also Check | Operation Sindoor Live Updates
The domestic currency began trading at 84.65 and subsequently dropped to 84.66 against the dollar at the interbank foreign exchange, showing a decline of 31 paise from its previous closing value.
On Tuesday, the rupee closed at 84.35 against the US dollar, down by 5 paise, amidst increasing uncertainty and careful risk assessment.
"Whilst speculators and worried importers might purchase dollars, we anticipate the Reserve Bank of India (RBI) will intervene to prevent any significant rupee decline," stated Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.
Bhansali added, "We expect there could be some selling by FII in the equity markets though that could be subdued as they would want to wait for further news of escalation to filter down."
"Markets today are likely to be nervous and a bit volatile, but as we said earlier, it would depend on RBI to control the market volatility and they will determine where the rupee ends today."
The dollar index, measuring the US currency against six major currencies, increased by 0.30 per cent to 99.53.
Brent crude futures traded higher by 0.68 per cent at USD 62.57 per barrel.
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