New Head of Reserve Bank of India Boosts Currency and Stocks

The Indian currency and stocks have jumped a day after the country's new central bank chief took charge and promised tough action to boost growth.

The Indian rupee, one of the world's worst performers this year, rose 2.3% against the US dollar.

India's main stock index, the Sensex, closed up 2.2% on Thursday.

On Wednesday, Raghuram Rajan unveiled a series of measures aimed at propping up the currency and liberalising the country's banking sector.

"To a certain extent, the recent rupee tumble and instability in the financial markets has been a crisis of confidence," said Radhika Rao, an economist with DBS Bank.

"To that end, the path of action provided by the new governor and the stress on keeping communications predictable and consistent will be a welcome move."

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, he established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza