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.”
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