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
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. 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.
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