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Rupee, market welcome RBI's new governor Raghuram Rajan
Former IMF chief economist Dr. Raghuram Rajan has stepped into the shoes of former RBI governor D. Subbaroa. As soon as Rajan took the reins of Reserve Bank of India, the falling rupee, the crashing markets too gave him an standing ovation.

The falling value of the rupee against a US dollar, which had almost crossed the mark of 68, was trading at 65.71 on Thursday morning, when markets opened. Share markets too responded positively to the various measures announced by the Rajan in the wake of current economic crisis with benchmark index Sensex going up 473 points at 19040. The fifty-index Nifty was also up 145 points at 5593.

The new governor's statement that the central bank will offer a swap window to banks for fresh dollar deposits mobilised from non-resident Indians, which will be available to lenders till November 30, 2013, made the trading of all banking stocks in green.

To boost rupee Rajan has said that the financial markets will be liberalized by enhancing the limits for exporters to re-book cancelled forward exchange contracts.

The stock market BSE and Nifty also jumped on the hopes that Raghuram Rajan will announce more reforms in the financial sector in coming times as he himself said that the measures announced were just part of his short-term time table and that a broader road map will follow soon, as reported by the First Post.

Industry while welcoming Raghuram Rajan expressed hopes he will be able stir the economy through the tumultuous phase it is passing through. The industry body FICCI in a statement said, “ We hope that given Dr. Rajan's extensive experience and knowledge of the financial markets, we could see some innovative moves by the central bank as well as greater coordination on policy with the Government to ease the situation and bring confidence back in the economy."

Confederation Indian Industry (CII) said that expressed confidence that as the new Governor, Rajan would be able to deal with the complexities that the RBI is faced with.

“His background makes him the most suited for this important position and CII is hopeful that going forward we shall be able to work with him as he steers the RBI through these troubled times,” said Chandrajit Banerjee, Director General, CII.

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