India's Rupee, Stocks Down As Central Bank Chief Quits

India's rupee plunged along with equities on Tuesday after the country's central bank chief quit following a dispute with the government that has raised fears about its independence.

Mumbai, (UrduPoint / Pakistan Point News - 11th Dec, 2018 ) :India's rupee plunged along with equities on Tuesday after the country's central bank chief quit following a dispute with the government that has raised fears about its independence.

Urjit Patel stood down as governor of the Reserve Bank of India (RBI) on Monday evening following months of tensions with Prime Minister Narendra Modi's government over interference in policy.

Patel cited "personal reasons" for his decision but experts and analysts have said he was annoyed by repeated efforts by New Delhi to impose its influence.

The rupee sank more than one percent to 72.19 per Dollar, with speculation swirling that an RBI intervention kept it from falling further, while the benchmark Sensex in Mumbai slid 1.47 percent shortly after the opening bell.

The shock resignation comes after Patel's deputy, Viral Acharya, warned the government in a strongly worded speech in October that undermining the bank's independence could be "potentially catastrophic".