Rupee Takes a Hit: Geo-political Tensions Push Currency Down

The Indian rupee fell 45 paise to close at 84.80 against the US dollar, influenced by military strikes in Pakistan and Pakistan-Occupied Kashmir by Indian forces. Operation Sindoor was launched after a recent terror attack in Pahalgam, with forex markets reacting to rising geopolitical tensions and economic factors.

The Indian rupee depreciated 45 paise, closing at 84.80 against the US dollar, amid rising geopolitical tensions caused by India's military action in Pakistan and Pakistan-Occupied Kashmir.

The strikes, part of Operation Sindoor, targeted several terrorist hideouts, leading to market fluctuations and affecting forex traders' sentiments.

Despite the rupee's fall, positive domestic and global markets, along with foreign investments, supported a cautiously optimistic outlook, even as traders remained wary ahead of the US Federal Reserve's meeting.

(With inputs from agencies.)