Amidst reports that Raghuram Rajan may not agree to continue for a second term, the rupee slips and weaken against the dollar. His current three-year term ends in September, and the West Bengal’s Anand Bazar Pratrika reported that he may not continue and that Rajan is keen to go back to the US and Pursue research. Following the report the rupee lost 19 paise.

It was not a smooth ride for Rajan. In 2014, the finance ministry was unhappy with Rajan when he refused to slash interest rates; however Modi intervened and warned against any public comments against the central bank.

Since then the relation between the prime minister and the RBI Governor is said to be on a rosy patch and sources reveal that no amount of campaign against Rajan will effect Modi, who is happy with what Rajan has been doing for the economy. He would be more than happy to extend Rajan’s term if the latter wishes to continue, especially now when nationalized banks are reeling under debt crisis and need some amount of bailing out.