Rajan took charge as the RBI governor at a time when the rupee was facing its stiffest challenge after 1991. Of course, Rajan, by virtue of being the chief economic adviser in the finance ministry, was well aware of the turmoil in the foreign exchange market. Rajan announced measures such as opening a foreign exchange swap window to oil companies, providing dollars by a forward agreement. Essentially, this took the demand for dollars of the oil companies out of the foreign exchange market. Rajan himself has given some credence to this by hinting that he was not averse to continuing in office.

Source: The Telegraph September 05, 2016 21:45 UTC