In the Interbank Foreign Exchange, the domestic unit opened at 85.88 against Greenback, declining 30 money from its previous nearly. File | Photo Credit: Hindu
The rupee on Friday (May 9, 2025) in the initial trade increased 30 money to 85.88 against the US dollar, intensifying the geopolitical tension between India and Pakistan.
Forex traders said that geopolitical tension between India and Pakistan has increased the risk in the market, causing a weakness of the rupee. In addition, the increasing demand for US dollar led investor sentiments.
In the Interbank Foreign Exchange, the domestic unit opened at 85.88 against Greenback, declining 30 money from its previous nearly.
On Thursday (May 8, 2025), the rupee saw the two-day-day-day-day-day-day-day-day-day-day cum and on Thursday (May 8, 2025) reduced 81 money on 85.58 against the US $ 85.58, reduced the increased geopolitical tensions between India and Pakistan.
The Indian Army said on Friday (May 9, 2025) that the armed forces of Pakistan started several attacks using drones and other sages along the entire western border on the night of 8-9 May, which was “effectively repeated on Friday (May 9, 2025).”
Pakistani troops also resorted to “many ceasefire violations” along with the Line of Control (LOC) in Jammu and Kashmir, the Indian Army said in the morning post on X.
The rupee fell by 84.52 to 85.78 on Thursday (May 825) to 85.78 and the dollar could not go down on the increase in index and until the Reserve Bank of India (RBI) could go up to 86.50 to sell the steps, Anil Kumar Bhansali, Treasury and Executive Directory said.
Meanwhile, the dollar index, which detects the strength of greenback against a basket of six currencies, was trading more than 0.01% at 100.65. Global Oil Benchmark Brent crude, futures increased by 0.30% to $ 63.03 per barrel.
“During the scenario like any war, investors usually flee to safe-heven assets, which leads to capital outflow and weakens the currency in short term,” said-Amit Pabri, Managing Director of CR Forex Advisors.
“However, this weakness is likely to live for short term, as war stresses decrease and strong original data, the Indian rupee is ready to appreciate in the medium period,” said Mr. Pabri.
In the domestic equity market, the 30-Sharir Bombay Stock Exchange (BSE) Sensx declined by 589.96 points or 0.73%, while the Nifty fell from 195.50 points or 0.81% to 24,078.30.
According to exchange data, foreign institutional investors (FII) bought a price of 2,007.96 crore on a net basis on Thursday (May 8, 2025).
Published – May 09, 2025 11:18 AM IST
