Raghuram Rajan says rupee at 45-50 a dollar would hit exports

Reserve Bank of India (RBI) Governor Raghuram Rajan has said a "substantial" strengthening in the rupee to 45 or 50 per dollar could hit exports, although he added the central bank was fine with "a certain amount of leeway" in the currency.

In an interview to CNBC-TV18, Rajan also said the RBI does not want to declare victory on inflation yet, despite keeping interest rates on hold on Tuesday as widely expected.

RBI would rethink its stance if there is a "substantial" change of inflation, up or down, he said.