Indian Rupee Falls To Near 4-week Low Amid India-Pakistan Tensions

The Indian rupee weakened against the U.S. dollar in the European session on Thursday, as growing concerns over escalating India-Pakistan tensions curbed investors' appetite for risk.

In a calibrated and proportionate military response, the Indian Armed Forces this morning targeted air defense radars and systems at multiple locations inside Pakistan.

One of the significant targets - an air defense system positioned in Lahore - was successfully neutralized, according to a press release by PIB.

Defense sources said that the Indian Air Force deployed its S-400 Sudarshan Chakra air defense missile systems last night to engage targets approaching Indian airspace.

Also, Pakistan has increased the intensity of its unprovoked firing across the Line of Control using Mortars and heavy calibre Artillery in areas in Kupwara, Baramulla, Uri, Poonch, Mendhar and Rajouri sectors in Jammu and Kashmir.

Against the U.S. dollar, the rupee fell to nearly a 4-week low of 85.80 from an early high of 84.49.

If the rupee extends its downtrend, it is likely to find support around the 87.00 region.

Looking ahead, U.S. weekly jobless claims data, wholesale trade sales data for March and U.S. consumer inflation expectations for April are slated for release.