Mumbai: India´s rupee plunged on Tuesday after the country´s central bank chief quit following a dispute with the government that analysts say raises fears about its independence.
Urjit Patel stood down as governor of the Reserve Bank of India (RBI) on Monday evening following months of tensions with Prime Minister Narendra Modi´s government over interference in policy.
Patel cited "personal reasons" for his decision but experts and media reports have said he was annoyed by New Delhi´s repeated efforts to impose its influence.
The rupee sank more than one percent against the dollar, with speculation swirling that an RBI intervention kept it from falling further.
Indian stocks saw volatile trade, with the benchmark Sensex in Mumbai falling sharply at the opening bell before rebounding to sit slightly higher in the afternoon.
Analysts say Patel´s departure, extremely rare for a central banker before the end of his term, is evidence that the RBI´s autonomy is under threat.
Pakistani laborers sort potatoes at a vegetable market in Karachi. — AFP/FileISLAMABAD: Pakistan, recognised as one...
The Karachi Chamber of Commerce & Industry building. — Facebook/Kcciofficial/File KARACHI: The Karachi Chamber of...
Silver rates remained unchanged at Rs2,580 per tola
The BoJ last week raised interest rates for the first time since 2007 and ditched its controversial negative interest...
The rupee, which was declining on a daily basis against the dollar, started recovering rapidly from over Rs320 to Rs270
Announcement was made by Askar Sydykov, Director of IBC, during discussions with a Pakistani trade delegation led by...