Rajan Says U.S. Must Accept Strong Dollar as Fed Normalizes

India’s central bank chief said the U.S. will have to accept a stronger exchange rate as the Federal Reserve turns toward raising interest rates for the first time since 2006.

“The Fed will have to start at some point normalizing interest rates,” Raghuram Rajan, 52, said in an interview with Bloomberg TV India’s Harsha Subramaniam at the Reserve Bank of India headquarters in Mumbai. “Unless the Fed starts doing it, others aren’t going to follow suit. And the Fed, when it does that, will have to accept some appreciation of the dollar simply because it’s the first one out of the box.”