India names PM ally as new central bank chief
mumbai — India’s government named an ally of Prime Minister Narendra Modi as the country’s new central bank chief on Tuesday, a day after his predecessor quit following a dispute about government interference.
Shaktikanta Das has been appointed governor of the Reserve Bank of India for three years, a government statement said.
The 63-year-old is a former senior finance ministry official and a key figure in Modi’s controversial “demonetisation” scheme of November 2016.
Das has worked with various government bodies and was part of the economic affairs ministry when Modi announced his controversial cash ban that scrapped 86 per cent of notes overnight. —
dubai — The Indian rupee, which plunged on Tuesday after the country’s central bank chief quit, is forecast to continue its tailspin to hit as much as 75 per dollar, or 20.45 per dirham, after a recent short-lived rally on the back of falling oil prices, analysts and currency experts said.
On Tuesday, the currency of the third largest Asian economy sank 1.5 per cent against the dollar to 72.46, or 19.74 per dirham, amid speculation that an RBI intervention kept it from falling further.
Indian stocks also witnessed a volatile trade, with the benchmark Sensex in Mumbai falling sharply at the opening bell before rebounding to sit slightly higher in the afternoon as results of the polls in 5 Indian states rendered a heavy blow to Prime Minister Narendra Modi’s government. S&P BSE Sensex and NSE Nifty50, after shedding over 530 points and 150 points respectively, closed higher.
Analysts at Fitch Ratings said they expect the Indian currency to weaken to 75 against the greenback by the end of next year on a widening current account deficit and tighter global financing conditions.