New Delhi, May 7 -- The rupee weakened by 31 paise to reach 84.66 against the US dollar in early trading on Wednesday, following India's missile strikes on terrorist camps in Pakistan and Pakistan-Occupied Kashmir, which heightened cross-border tensions.

Early Wednesday, the Indian military launched strikes on nine terrorist targets, including the Jaish-e-Mohammad headquarters in Bahawalpur and the Lashkar-e-Taiba base in Muridke, as part of Operation Sindoor. These strikes came two weeks after the Pahalgam attack that claimed 26 civilian lives.

According to forex traders, the rupee's decline reflects concerns over a potential escalation in conflict due to the military action. At the interbank foreign exchange market, the rupee opened a...