Mumbai, May 8 -- The Indian rupee fell nearly 1% on Thursday amid rising tensions between India and Pakistan.

The domestic currency opened at 84.61 and moved between an intra-day high of 84.52 and a low of 85.77 against the dollar. It closed 89 paise lower at 85.72 after ending at 84.83 against the dollar on Wednesday, marking the worst day since 6 February 2023.

Both the currency and stock marketsdeclined on Thursday after India confirmed it had targeted air defence radars and systems at a number of locations in Pakistan, while Pakistan's military said it had shot down 25 Indian drones.

The rise in dollar index also aided in the rise of dollar-rupee. The dollar index, which gauges the dollar's strength against a basket of six currenci...