Strong macroeconomic fundamentals of India will ensure that the economy is under control and in a better position than other economies. The country has $380 billion forex reserves that will be put into use when required.
The Governor also hinted at lowering interest rates, if the status of lower commodity prices continues, with astute food management by the Government and strong anti-inflation policy stance of the central bank. The oil prices would remain at low levels for a year or two, as per predictions.
The rupee has seen a low level, at 66.49, in the last 2 years, in opening trade on sustained capital outflows. The RBI Governor said that turmoil in currency market has been long-coming and China is only the last step in it.
Rupee has strengthened against yen and euro, and RBI has resources to deal with rupee volatility. Crude prices fell after slipping below $40 barrel for the first time in six years after weak Chinese manufacturing data.