India's reserves to act as buffer if mkts turn volatile: Rajan

RBI Governor Raghuram Rajan today expressed confidence that India's forex reserves and strong macroeconomic fundamentals will act as buffer if global financial markets turn volatile.

"We will be tested by capital outflows and my hope is that we have done enough in terms of strengthening the macroeconomic fundamentals of the country...as well as in building up reserves," Rajan said at an event here today.

He said if interest rates inch up in industrialised economies there could be volatility across the world.

Strong macroeconomic fundamentals would help our country withstand any kind of volatility, he added.

India's foreign exchange reserves stood at USD 319.99 billion in the week to August 1.

Last year, global financial markets went into a tizzy after the US Federal Reserve hinted it would wind down its monthly economic stimulus programme. The rupee had touched its lifetime low of 68.85 against a US dollar in August last year, but has strengthened since then to 61-levels.