India discussing foreign reserve diversification

Reserve Bank of India governor Yaga Venugopal Reddy told reporters on Friday that diversification of the central bank's reserves was being discussed.

His comments raised the prospect of diversifying its foreign exchange reserves away from the dollar, becoming the latest Asian country to fuel market rumours over the U.S. currency.

India's reserves, the sixth largest in the world, are at a record high of $135.66 billion, and Reserve Bank of India Governor Yaga Venugopal Reddy said diversification