The Indian rupee was climbing rapidly on Wednesday as a new governor assumed the leadership of the central bank, Reuters reports.
Formerly the chief economist with the International Monetary Fund, Raghuram Rajan began his tenure at the Reserve Bank of India on Wednesday. He comes aboard as the nation is believed to be immersed its most profound economic dire straits since the early 1990s. Rajan is known for having predicted the credit crunch of 2008.
"The rupee will be Rajan's first and key challenge. His IMF aura may help but he will need to win the market's faith by announcing something which helps bring in dollar inflows," senior foreign exchange dealer Vikas Babu Chittiprolu with state-run Andhra Bank told Reuters on Wednesday.
An all-time high currency account deficit and a severe budget deficit are among the top issues the nation is facing. Prices of two of the subcontinent's top imports, gold and oil, were climbing on Wednesday, which curbed advances.
The Wall Street Journal reports the rupee has been climbing since scraping its record low against the U.S. dollar late last month.
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