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Thursday March 28, 2024

Indian rupee slides

By AFP
December 12, 2018

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.