India-Pakistan reportedly exchange heavy fire on Line of Control - USD/INR may extend gains

The tensions between India and Pakistan are reportedly escalating. There is a heavy exchange of fire in multiple locations along the Line of Control (LoC) according to the latest. 

This comes after Pakistan downed at least one Indian plane and captured the pilot. On Tuesday, India bombarded an alleged terrorist camp in Balakot, inside Pakistan, outside the disputed Kashmir region. And this came after militants targeted an Indian military base in Kashmir.

The clashes between the two nuclear nations already send the Indian rupee lower with USD/INR hitting a high of 71.50. Further upside targets are eyed.

71.90 and 72.30 and next. Support is at 70.80, then 70.40.