By News Desk 
On the intervening night of Tuesday and Wednesday, the Indian Army carried out a major military operation under ‘Operation Sindoor’. In this operation, nine terrorist hideouts in Pakistan and Pakistan Occupied Kashmir (PoK) were targeted, including the main hideouts of organizations like Jaish-e-Mohammed and Lashkar-e-Taiba.
This action was taken two weeks after the Pahalgam terrorist attack, in which 26 Indian civilians lost their lives. This surgical strike of the army is being seen as a warning to Pakistan that India will not sit silent now.
Attack on terrorism, but also a blow to the economy
While on the one hand this military action introduces India’s strategic strength, on the other hand its direct impact was also seen on the Indian currency. On Wednesday, in early trade, the rupee fell by 31 paise to 84.66 per dollar, which is much below the previous closing price. On Tuesday it closed at 84.35 per dollar.
Why did the rupee weaken?
According to foreign exchange analysts, the news of Indo-Pak tension has increased panic in the market. During trading in the Interbank Foreign Currency Exchange, the rupee started with weakness, and this decline deepened as the day progressed. Till last week, the rupee was at the level of 83, but now it is under constant pressure.
What is the way forward in the eyes of experts?
Anil Kumar Bhasali, Executive Director, Finrex Treasury Advisors, believes that this decline may be temporary. According to him, “RBI (Reserve Bank of India) is able to handle such volatility and can intervene in the currency market if needed.” He also indicated that FIIs (Foreign Institutional Investors) may sell a little, but they will not be very aggressive.
Dollar and crude rise
Meanwhile, the US dollar index has also registered strength and it has increased by 0.30% to 99.53. Brent crude oil is also trading at $ 62.57 per barrel with a gain of 0.68%. Its effect was also seen on the domestic stock market, where the BSE Sensex closed at 80,533 points with a decline of 107 points, while the Nifty remained at 24,355 points with a weakness of 24 points.