On February 24, 2022, Russian President Vladimir Putin announced a ‘special military action’ in eastern Ukraine. This was considered as an act of war and took everyone by surprise. The Indian markets crashed by 4.7 per cent that day. At the inter-bank foreign exchange market, the rupee opened at 75.02 against the US dollar but later dropped to a low of 75.75. This was mainly due to outflow of funds from emerging markets owing to geopolitical uncertainties. The foreign reserves have fallen over 2-3 per cent from its peak.