In response to the pahalgam terror attack, the indian Army attacked terrorist hideouts in pakistan and Pakistan-occupied kashmir in the early hours of Wednesday. This air strike by the indian Army targeting terror bases in PoK was named 'Operation Sindoor'. After this military action by India, the rupee weakened by 31 paisa to 84.66 against the dollar in early trade on Wednesday.
9 hideouts of terrorists destroyed
Let us tell you that the indian Army targeted and destroyed 9 hideouts of terrorists in pakistan and PoK on the intervening night of Tuesday-Wednesday. The indian armed forces carried out missile attacks on nine terrorist hideouts including the headquarters of Jaish-e-Mohammed in Bahawalpur and the camp of Lashkar-e-Taiba in Muridke.
Action two weeks after pahalgam attack
This military action under 'Operation Sindoor' took place exactly 15 days after the pahalgam incident, in which 26 innocent people were killed. Most of them were tourists. currency market specialists say that these military actions against terrorist hideouts have drawn attention to the possible impact of the conflict on the rupee.
Effect of military action on rupee
The rupee opened at 84.65 against the dollar in the interbank foreign exchange market and later during trading it came down to 84.66 against the dollar, showing a decline of 31 paise from the previous close price. On Tuesday, the rupee closed at 84.35, down 5 paise against the US dollar. The rupee is under pressure amid growing uncertainty and tension with Pakistan.
RBI may intervene
According to a TOI report, Anil Kumar Bhasali, Treasury Head and Executive Director, Finrex Treasury Advisors LLP, said, in this situation, speculators and importers concerned about trade may buy dollars. However, we anticipate that the reserve bank of india (RBI) will intervene to prevent any major fall in the rupee. He further said, it is also being speculated that there may be a sale of shares by foreign investors in the equity markets. However, they will not do so in a hurry, but will wait for further updates. There is a possibility of turmoil and some fluctuations in the market today, but as we said earlier, it will depend on the RBI to control the volatility of the market and they will decide where the rupee will stop today.
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