Wednesday's Indian currency lost ground on market rumors that Reserve Bank of India governor Urjit Patel was about to step down after a tense confrontation with Prime Minister Narendra Modi's government.
Speculation comes days after Mr Patel's Deputy Member, Viral Acharya, he gave a tough public talk warning of "potentially catastrophic" consequences of the government's increasing efforts to influence central bank policies.
The Indian Ministry of Finance is angry at Mr Acharya's speech – issued a statement on Wednesday stating that central bank autonomy is "an essential and accepted governance requirement".
However, it is said that the government is entitled to conduct "extensive consultations" with the regulator, "through which it does so." gives his opinion on topics and suggests possible solutions. "He added that" the government will continue to do so. "
Differenc The governments between RBI and the Modi government have increased in response to a number of sensitive issues, most notably the government's ambitions […] The government has also expressed anger at the RBI 's refusal to water down the growth restrictions of malfunctioning banks and the management of the liquidity squeeze on the The recent payment default by infrastructure funder IL & FS followed.
The rupee had fallen by 0.4% at R.9573.95 against the dollar, having previously fallen to 74.13 rupees.