Rupee will regain value: Chidambaram

Finance Minister P Chidambaram Thursday said the Indian rupee should recoup its recent losses as the depreciation was overdone given the fundamentals of the economy.

"Rupee has to find the value depending on the fundamental macro-economic factors," Chidambaram said in the Lok Sabha, adding that the recent decline was overdone.

"We think that the correction will take place."

However, the finance minister emphasised that the government was not targeting any particular level for the currency.

The Indian rupee has depreciated by more than 20 percent since the beginning of the current financial year. The rupee recently hit a record low of nearly 69 against a dollar.

Chidambaram said fundamentals of the economy would decide the value of currency.

The finance minister pointed out that the rupee had witnessed a volatile journey in the past and had recovered from the lows.

Chidambaram said the government was concerned about the growth slowdown and a number of steps had been taken to revive the economy.

"We are concerned about the decline in growth last year and I am especially concerned about the decline in growth in the first quarter of this financial year," he said.

India's gross domestic product (GDP) growth slumped to 4.4 percent in the quarter ended June 30, 2013 -- the worst performance in four years.

The finance minister said the government was committed to meeting the tough fiscal deficit targets for the current financial year.

"This is a year of fiscal consolidation... I have repeatedly said that the 4.8 percent which we have estimated will be the fiscal deficit is a red line. The red line will not be crossed," he said.