Indian Rupee Weakens Amid Rising Tensions, US Calls For De-escalation

On Thursday, the Indian Rupee had experienced a sharp drop of 89 paise, closing at 85.72 after opening 19 paise stronger at 84.64

Earlier in the week, the currency had also declined by 39 paise to settle at 84.83 against the US Dollar on Wednesday

Source : ABPLIVE AI

The Indian Rupee opened 13 paise weaker at 85.85 against the US Dollar on Friday, as geopolitical tensions between India and Pakistan intensified. On May 8, India successfully intercepted missiles and drones targeting key military installations, escalating concerns in the region. The United States has urged both nations to de-escalate the situation to avoid further instability.

On Thursday, the Indian Rupee had experienced a sharp drop of 89 paise, closing at 85.72 after opening 19 paise stronger at 84.64. Earlier in the week, the currency had also declined by 39 paise to settle at 84.83 against the US Dollar on Wednesday. Forex traders noted that investors became risk-averse in the domestic markets following an attempted attack by the Pakistani military on several military targets in northern and western India using drones and missiles, all of which were neutralized by India's defense systems. Additionally, heightened geopolitical risks, a strong US Dollar Index, and rising crude oil prices added pressure on the rupee. 

Forex traders noted that investors turned risk-averse in the domestic markets following an attempted attack by the Pakistani military on several military targets in northern and western India. The strikes, which involved drones and missiles, were successfully neutralized by India's defense systems.

Brent Crude Price

Meanwhile, Brent crude prices rebounded past $63 per barrel, up by 0.26 per cent as of 9 am on Friday. The US Dollar Index remained largely unchanged, reflecting a sense of cautious stability in global markets.

Stock Market

Meanwhile, Indian markets opened on a weak note on Friday, with the Nifty falling below the 24,000 mark amidst escalating tensions between India and Pakistan. The Sensex dropped 495.69 points (0.62 per cent) to 79,839.12, while the Nifty declined by 186.30 points (0.77 per cent) to 24,087.50. The market breadth remained negative, with 327 stocks advancing, 2,014 declining, and 71 remaining unchanged.