The rupee opened around 14 weakest lands on Wednesday following India, performing “Operation Sindoor” to destroy the terrorist infrastructure in Pakistan and fall into national capital markets.
The Indian unit opened to 84.58 per US dollar compared to the previous closure of 84.44. The USDINR torque tested a high/ low of 84.61/ 84.53 in intradic operations so far. It is currently traded at 84,5075 per USD.
It is believed that the RBI ensures that the rupee remains a competitive fish of the Chinese yuan, which shows a depressing trend.
Amit Pabari, MD, CR Forex Advisors, observed that the decisive movement of India to carry out precision attacks in nine terrorist sites throughout Pakistan under the Sondoor operation introduces a complex dynamic for markets.
“Foreign investors often see these climbs with caution, and the resulting geopolitical risk could cause capital outputs and volatility in the rupe in the short term,” he said.
However, Pabari pointed out that the United India-Reinian Free Trade Agreement positions India as a strategic and stable commercial partner, improving the global feeling of investors and supporting the rupee.
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Posted on May 7, 2025
