The unexpected resignation of RBI governor Urjit Patel on Monday has affected negatively to Indian currency. Following the resignation of Patel, The rupee fell sharply against the US dollar on Tuesday.

The rupee was trading at 72.46 against the US dollar, down 1.5%, as compared to Monday’s close of 71.32. The dollar also gained other currencies, putting further pressure on the rupee.

On Monday, Urjit Patel resigned from the position citing personal reasons with immediate effect on Monday, nearly 10 months before the completion of his term in September next year.

Patel’s resignation has raised worries about further outflows from Indian markets.

Credit rating agencies indicated they were watching the development closely, though a knee-jerk reaction was unlikely.

In a statement rating agency Moody’s said that While the motivation for the RBI Governor’s resignation is unclear, the independence of a country’s central bank is an important consideration in our assessment of a sovereign’s institutional strength.It further added that  We would consider signs that the government attempts to curtail the central bank’s independence to be credit negative.