The rupee which had lost 2.7 per cent of its value during 1999-2000, has depreciated 2.5 per cent of its value within the first few months of the current fiscal. It started falling from Rs. 43.67 a dollar on May 9 to Rs. 44.95 a dollar on June 8 but recovered to close at 44.69 on June 15.Predicting a six plus economic growth rate in 2000-01,Sinha said he was even optimistic about hitting the seven per cent level.

Sinha also ruled out any increase in interest rate in the current financial year saying that factors responsible for increasing the rate, namely higher rate and pressure on rupee were both temporary. The higher inflation was the result of the revision in administered prices because money supply was even lower that last year, Sinha said. Apart from the fact that government would be borrowing alarger amount from the market, there was nothing else in the situation which should lead to a higher interest rate, Sinha added according to a release by BBC Worldwide.