Indian Rupee Plummets To Near 4-week Low Vs Dollar After RBI Governor Steps Down
December 10 2018 - 3:10AM
RTTF2
The Indian rupee lost ground against the U.S. dollar in the
evening session on Monday, following the resignation of Reserve
Bank of India Governor Urjit Patel citing personal reasons.
The resignation is effective with immediate effect.
"On account of personal reasons, I have decided to step down
from my current position effective immediately," the Governor said
in his letter.
The resignation came as result of the rift with the government
on issues relating to liquidity management, usages of excess
reserves and limitations on NPA-laden banks.
Patel, who was appointed for a three-year term in 2016, was to
end his term in September 2019.
The rupee has been already trading lower on higher oil prices as
well as weak global cues and anxiety ahead of the outcome of
assembly election results.
Risk sentiment took a hit after the exit poll predictions for
five states left the Congress jubilant and the ruling Bharatiya
Janata Party worried going into 2019 election.
Global shares fell as weak data from China and Japan, Italy's
budget dispute with the European Union and heightened trade worries
sapped investors' appetite for risk.
The rupee was down 1.6 percent at near a 4-week low of 72.47
against the greenback after the news. The rupee ended Friday's
trading at 71.30 per greenback. The rupee is seen finding support
around the 74.00 region.
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