FxWirePro: Rupee strengthens sharply as Pakistan to release captured Indian Pilot as peace gesture

Not war, but peace.

• Rupee enjoyed a peace rally just before the closing of Indian markets, as Pakistan’s newly elected Prime Minister, Imran Khan, who has been a very well-known cricketer in the Indian subcontinent in his previous career, announced that the detained Indian Pilot would be released as a signal that Pakistan wants peace, not war.
• The pilot, Abhinandan Varthamn was captured by the Pakistani army, earlier this week after his plane was shot down in battle.
• Though the announcement was somewhat expected. However, as the Prime Minister announced the move, investors rushed to cover short positions in Rupee, leading to a sizable ‘peace rally’.

Rupee rises:

• Yesterday, Indian rupee weakened to as low as 71.5 per USD, as news surfaced that Pakistani fighter jets entered Indian Territory and dropped bombs. It was a warning from Pakistan as all bombs were dropped to remote and inhabited location. Indian fighter jets attacked the Pakistani bombing parties and both sides lost one plane each. As both planes crashed in the Pakistani territory, the Indian pilot was captured by the Pakistani army.
• As the news surface, the rupee has strengthened to as high as 70.65 per USD.