USD/INR HOLDS STEADY AMID INDIA-PAKISTAN TENSIONS
USD/INR HOLDS STEADY AMID INDIA-PAKISTAN TENSIONS
The Indian Rupee (INR) remained largely unchanged against the US Dollar (USD) on Monday, trading within a narrow range.
This stability comes despite escalating geopolitical tensions between India and Pakistan following a militant attack in Kashmir.
The INR opened flat to slightly higher on Monday, with the USD/INR pair fluctuating between 85.08 and 85.66 on Friday.
The rupee closed at 85.45, indicating minimal movement amid market uncertainty.
The recent attack in Kashmir, resulting in 26 deaths, has intensified hostilities between India and Pakistan.
India attributes the attack to Pakistani elements, a claim Pakistan denies.
Both nations have taken retaliatory measures, including suspending bilateral agreements and restricting airspace, leading to heightened market volatility.
Investor sentiment has been affected by the escalating tensions, with the Nifty 50 index falling nearly 1% and the 10-year bond yield rising by 4 basis points.
Traders are closely monitoring developments in Kashmir, which is a long-standing contentious region claimed by both India and Pakistan.
The Reserve Bank of India (RBI) is expected to continue its intervention in the currency markets to stabilize the INR.
