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Jalan mum on weak rupee; says interest rate comfortable

Reserve Bank of India Governor Bimal Jalan declined comment on the rupee which slumped to a lifetime low against the dollar on Tuesday.

"No comments, no comments at all," Jalan told reporters after being asked to comment on the rupee's fall.

The rupee closed at 47.1200/1300, after sinking to a record low of 47.21 in the morning.

Jalan made the statement as he entered a meeting with Finance Minister Yashwant Sinha to discuss the slowdown in the economy. Sinha said last weekend he would meet central bank officials on Tuesday to review the economic downturn.

After the meeting he asserted that the domestic interest rates were "fairly comfortable", but declined to comment on whether any further easing might be in store.

"Interest rates as of now are benign, interest rates are fairly comfortable," he said

Jalan said he did not see any sign right now of the government exceeding its market-borrowing target despite its plans to stimulate the economy to jumpstart growth, which fell to 5.2 per cent last year from 6.4 per cent in 1999-2000, according to figures released by the national statistics agency.

"I have no indication of it as of now. At the moment there is no problem. There is plenty of money available," he said.

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