Thursday, May 8, 2025 | 2:55 am

Indian Rupee Falls Against the Dollar Amid Rising Tensions

Indian Rupee

Nuclear Neighbours on Edge After Kashmir Attack

South Asia’s two nuclear powers, India and Pakistan, are once again on the edge of a serious conflict. The situation turned tense after a deadly militant attack took place in Pahalgam, a town in Jammu and Kashmir, earlier this week.

In response, India launched airstrikes on several locations inside Pakistan at midnight on Tuesday. These strikes, according to Indian officials, targeted militant training camps. In a quick and strong reaction, Pakistan also carried out strikes in border areas, hitting back at Indian positions.

The cross-border attacks have sparked worries of a full-scale conflict between the two long-standing rivals.

The Indian rupee falls as conflict escalates.

As tensions escalate, the Indian currency is already under strain. According to Reuters, the Indian rupee fell against the US dollar shortly after the military measures were disclosed.

On Tuesday evening, one US dollar was exchanged for 84.4325 Indian rupee.

By Wednesday morning, the currency rate had dropped to between 84.64 and 84.68 rupees per dollar.

Experts believe that increased geopolitical concerns and fears of long-term conflict have caused investors to lose confidence, lowering the rupee’s value.

Military Strikes Cause Casualties on Both Sides

Indian officials claimed that their military conducted airstrikes on nine targets within Pakistani territory. According to Indian sources, the strikes were aimed at terror camps and infrastructure linked to the Pahalgam attack.

The results of the strikes were deadly:

  • 8 people were killed
  • 35 others were injured

On the other hand, Pakistan denied the Indian narrative and said their air defense systems responded effectively. Pakistani officials claimed to have shot down five Indian fighter jets in retaliation. However, the Indian military has yet to offer a formal response to that claim.

Pakistan has also confirmed three fatalities from Indian airstrikes on its side of the border.

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Airlines Cancel Flights Due to Rising Danger

The violence has had an impact on both civilian life and tourists. Several airlines, including IndiGo and Air India, have cancelled a large number of domestic and international flights. Some flights over northern India and parts of Pakistan have been cancelled for safety reasons.

Passengers have been advised to check with airlines before traveling, as more cancellations are expected if the situation does not improve soon.

Schools Closed in Pakistan’s Capital

The fear of war has also hit the education sector. In Islamabad, Pakistan’s capital, all schools and educational institutions have been closed until further notice. According to authorities, the decision was made to protect students and staff in the event that the incident escalated.

World is keeping a close eye on

The situation is being monitored attentively by the international community. Many people believe that a confrontation between India and Pakistan might destabilise the entire region, especially since both countries have nuclear weapons.

So yet, no official statement has been issued by international powers such as the United States, China, or Russia, but behind-the-scenes diplomacy is most certainly underway to de-escalate the crisis.

Dangerous Time for the Region

This is not the first time India and Pakistan have come close to war. However, with military action already underway, lives killed, and economic consequences obvious, the situation is quite dangerous.

Citizens on both sides hope that cooler heads will prevail and that the leaders of the two countries would reach a peaceful agreement before it is too late.

A Fragile Peace at Risk

As both countries trade military attacks and deaths mount, the situation remains precarious. With both India and Pakistan possessing nuclear weapons, the world waits for a diplomatic settlement to avoid further escalation. While the situation continues, hopes for diplomacy and patience grow, as any further bloodshed might have serious and long-term ramifications for the region.

Source: The Daily Jugantor

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