Raghuram Rajan took charge of Reserve Bank of India in September, 2013 at a time when Indian economy and Rupee was facing massive turmoil. His arrival, followed by landslide election by reform promising Bhartiya Janata Party (BJP) soothed the nerves of investors and Indian Rupee dropped from record low around 69 per Dollar to 59 per Dollar.

After becoming governor, initiated inflation targeting policies and planned to bring down inflation towards 4% target. While inflation surpassed RBI target to the downside, largely due to lower price, Indian Rupee has continued its slide and now back at level seen during 2013 turmoil.

Today Whole sale price index data came for December month and it showed for whole 2015, it remained in deflationary territory giving room for further rate cut from RBI, which has reduced rates by 100 basis points in 2015 alone.

After yesterday's contraction in Industrial production, it would be vital to see, what RBI does in terms of policy- whether it choose to further accommodate policy as inflation is low and oil price is dipping or hold rates and try to defend Rupee.

However, Raghuram Rajan has indicated previously that defending Rupee is no policy tool but RBI curbs volatility on either side. Rupee has slid to lowest since 2013 but RBI has been very successful in curbing volatility.

 INR is currently 67.3 per Dollar, down 0.55% for the day.