India rupee, stocks jump on new bank chief entry
MUMBAI (AFP) - India's rupee and stocks jumped on Thursday after the new central bank governor Raghuram Rajan outlined a reform plan aimed at boosting the ailing currency and slumping economy.
The rupee strengthened to 65.75 against the dollar in early trade, gaining nearly two percent from its previous close, on investor hopes that the worst could be over for the currency.
Indian shares jumped nearly 2.5 percent to 19,025.74 points, led by banking stocks, after Rajan took over Wednesday from Duvvuri Subbarao as head of the Reserve Bank of India (RBI).
He sought to reassure rattled markets with his first speech in the post, outlining a new approach to the currency crisis and warning that he may have to take unpopular steps to get Asia's third largest economy back on track.