Indian Rupee Bounces Back

The Indian rupee has bounced back from hitting a record low against the US dollar.

Indian stock markets were also up today (September 5th) after the country's new central bank chief took over in the role.

Raghuram Rajan unveiled a series of measures yesterday that have been designed to boost the currency and liberalise the country's banking sector.

Stocks responded strongly to the move, with the Sensex rising by 2.3 percent in early trade on Thursday, while the rupee was up by 2.3 percent against the US dollar. The currency has been one of the worst performers against the greenback over the course of 2013 so far.

Chris Towner, director of FX Advisory Services at foreign currency exchange brokers HiFX, recently claimed the weakness of the Indian rupee could prove to be good for the country's economy in the long run.

He was responding to the rupee hitting a new record low against the US dollar last month as the currency continued to falter.

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