Rupee fell sharply by 84 paise to close at 85.61 (provisional) against the US dollar on Thursday, as escalating geopolitical tensions between India and Pakistan triggered risk aversion among investors.
Forex traders said the domestic currency came under pressure after Pakistan attempted to target several Indian military sites using drones and missiles—a move thwarted by India’s defence systems. The geopolitical stress, coupled with a stronger US dollar and rising crude oil prices, further weighed on sentiment.
The rupee opened at 84.61 at the interbank foreign exchange and swung between a high of 84.52 and a low of 85.77 before settling at 85.61—its lowest closing level in recent months.
On Wednesday, the rupee had already slipped by 42 paise to 84.77, following India’s precision military strikes on terror hubs in Pakistan and Pakistan-occupied Kashmir under the ongoing Operation Sindoor.
Washington ‘watching situation very closely’
Meanwhile, a senior US military official said Washington is “watching the situation very closely” in the wake of Indian air strikes on terror targets in PoK and Punjab province in Pakistan.
Rupee is likely to remain under pressure due to strong US dollar and the continuing military tensions between India and Pakistan. Any further escalation could drive more weakness. However, FII inflows may offer some support at lower levels, according to Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan.
He expects the USD-INR spot to trade in the 85.20 to 86 range in the near term.
The US dollar index, which tracks the greenback against six major currencies, rose 0.46 per cent to 100.07, reflecting global safe-haven demand. Meanwhile, Brent crude climbed 1.05 per cent to $61.76 per barrel, adding to pressure on India’s import-dependent economy.
Stock market summary
The BSE Sensex slipped by as much as 454 points during the session, hitting an intraday low of 80,292, before settling 383 points lower at 80,363.65, down 0.47 per cent. Meanwhile, the NSE Nifty50 ended the day with a loss of 168 points, or 0.69 per cent, to close at 24,249.35.
Foreign institutional investors (FIIs), however, remained net buyers, pumping in Rs 2,585.86 crore into domestic equities on Wednesday, according to exchange data.
Meanwhile, in global developments, the US Federal Reserve held interest rates steady in the 4.25 per cent–4.50 per cent range. Fed Chair Jerome Powell said the economic outlook remains uncertain, with risks from inflation and trade tensions clouding the prospects of steady growth.
(With inputs from PTI)
Anurag Dhole is a seasoned journalist and content writer with a passion for delivering timely, accurate, and engaging stories. With over 8 years of experience in digital media, she covers a wide range of topics—from breaking news and politics to business insights and cultural trends. Jane's writing style blends clarity with depth, aiming to inform and inspire readers in a fast-paced media landscape. When she’s not chasing stories, she’s likely reading investigative features or exploring local cafés for her next writing spot.
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
