Rupee opens weaker, bond yields tighten on Rajan's exit news

Currency opens 54 paise lower at 67.68 against Friday's close; government bond yields was trading at 7.53%

The rupee opened weaker against US dollar in morning trades on Monday, at 67.68 against greenback, signalling markets’ displeasure over RBI governor Raghuram Rajan's decision to move back to academia on finishing his term at the central bank in September.

The currency had closed at 67.14 on Friday, according to data from Clearing Corporation of India. The currency had touched an all-time low of 68.85 on August 28, 2013.

Meanwhile, the yield on 10-year government bonds was at 7.53%. It had closed at 7.50% on Friday.

On Saturday (June 18), Rajan announced his intention to return to academia after completing his three-year stint at the Reserve Bank of India. He is slated to go back to Business School at University of Chicago.

After about a one-year stint as chief economic advisor with the government, Rajan came to RBI in August 2013 as designate (Officer on Special Duty) and took reins in hand as Governor in September 2013.

Rajan came to RBI amid volatility in global markets due to US Ferderal Reserve announced intent to end easy money policy. His top priority at RBI was to curb excess volatility on foreign exchange market and halt slide in value of rupee.