Operation Sindoor: Indian Rupee Falls 31 Paise to 84.66 Against US Dollar Following Strikes on Pakistan Terror Camps

The Indian military executed missile attacks and military operations against nine terrorist targets including the Jaish-e-Mohammad center in Bahawalpur and Lashkar-e-Taiba's facility in Muridke. A fortnight after the Pahalgam tragedy that killed 26 innocent people Operation Sindoor initiated military actions against terrorist targets. Currency market experts said that the military's operations against terrorists' facilities have brought attention to the possibility of escalating conflict and its impact on the rupee.

The currency of India was trading at 84.65 before dropping down to 84.66 in relation to the US dollar in an interbank rupee exchange rate market, which was down 31 paise compared to its prior closing value. On Tuesday the rupee slid to 84.35 in comparison to the US dollar, a decrease of 5 paise in the face of an increase in uncertainty and careful risk evaluation. "Whilst speculators and worried importers might purchase dollars, we anticipate the Reserve Bank of India (RBI) will intervene to prevent any significant rupee decline," declared Anil Kumar Bhansali. He is the Head of Treasury and Executive Director of Finrex Treasury Advisors LLP.

Bhansali added "We believe there will be a bit of selling from FII on the markets for equity, but it might be less pronounced since they'd prefer to wait for any further announcements of an escalation that will be filtered down. ""Markets today are likely to be anxious and somewhat unpredictable However, as we stated earlier, it is going to be up to RBI to regulate the market's volatility. They will decide where the rupee will end this morning. "The Dollar index which measures what is the US dollar against the six main currencies rose by 0.30 percent up to 99.53.Brent crude futures were up by 0.68 percent at USD to INR 62.57 per barrel.