Gold drifted lower by Rs 200 to trade at one-week low of Rs 31,050 per ten grams.
Rajan's appointment will be perceived as a positive development.
The US dollar has risen about 15 per cent since mid-2015.
The next policy meeting will be in mid-June, when the panel will be joined by Stanley Fischer, the former Bank of Israel governor whose nomination to the Fed's board was confirmed on Wednesday by the US Senate.
Chinese shares opened lower, with the Shanghai Composite Index down 1.8% and the CSI300 index down 2.2%.
Federal Reserve Chair Janet Yellen on Wednesday pointed to a possible December interest rate "liftoff" but said rates would rise only slowly from then on to nurture the U.S. economic recovery.
ICICI Bank extended yesterday gains, rising 10% in two trading sessions
If indeed we want the board to manage the RBI, probably the government should take a close look at the US Federal Reserve system which has a two-part structure - a central authority in Washington, DC, and a decentralised network of 12 Federal Reserve Banks located throughout the country, says Tamal Bandyopadhyay.
At the same time, however, officials at the central bank lowered their projections for the long-run target interest rate, evidence of slightly diminished expectations for a nation climbing out of a severe crisis and struggling with demographic headwinds like declining labor force participation.
Amid a grim global scenario, India will have to labour hard to hold on to seven per cent growth in 2016-17.
'... for two reasons: the poor quality of education, and the low rate of female participation in the labour force.' 'Unless something is done quickly to remedy these problems, India will just have a large population of low-skill, low-wage, males trying and failing to feed their families adequately.'
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