Rupee slides steepest in over two-and-a-half years

Rupee saw its steepest single-day fall in more than two-and-a-half years and settled 81 paise lower at 85.58 against the US dollar on Thursday, weighed down by heightened geopolitical tensions between India and Pakistan.

- TDG NETWORK

Forex traders said investors resorted to risk aversion in the domestic markets after the Pakistani military attempted a number of military targets in northern and western India using drones and missiles that were neutralised by Indian defence system.

Besides, heightened geopolitical risks, positive US dollar index and a rise in crude oil prices also weighed on the rupee.

At the interbank foreign exchange, the domestic unit opened at 84.61 and moved between an intra-day high of 84.52 and a low of 85.77 against the greenback.