Wed May 07 07:02:40 UTC 2025: ## Rupee Falls After India’s Cross-Border Strikes
**Mumbai, India –** The Indian Rupee weakened against the US dollar on Wednesday following Indian military strikes on terrorist targets in Pakistan and Pakistan-occupied Kashmir. The strikes, part of Operation Sindoor, were carried out in response to the Pahalgam attack two weeks prior, which killed 26 civilians.
The Rupee depreciated by 31 paise to 84.66 against the dollar in early trading. Market analysts attributed the fall to increased geopolitical uncertainty and potential speculation surrounding the escalating conflict. While some analysts predicted potential dollar buying by speculators and importers, others expressed confidence that the Reserve Bank of India (RBI) would intervene to prevent a significant slide.
The Indian stock market also reacted to the news, with the BSE Sensex down 0.13% and the Nifty down 0.10%. However, Foreign Institutional Investors (FIIs) showed continued confidence, purchasing equities worth ₹3,794.52 crore on Tuesday. Brent Crude oil prices rose slightly.
Anil Kumar Bhansali, head of Treasury at Finrex Treasury Advisors LLP, commented that while markets were expected to be volatile, the RBI’s actions would ultimately determine the Rupee’s trajectory. He also anticipated potential, but possibly subdued, FII selling in equity markets pending further news on the escalating situation.
First Piper 