"Moderation in foreign policy means neither surrender nor confrontation but constructive and efficacious interaction with the world," Rowhani said in his first live televised remarks since his election on June 14.
"In moderation, a balance must be achieved between realism and idealism," he said.
Iran is at odds with world powers over its controversial nuclear activities and its support for the embattled regime of Syrian President Bashar al-Assad.
Rowhani, who won almost 51 per cent of votes in the election to succeed Mahmoud Ahmadinejad, did not mention either issue directly but said he would move to build trust and ease tensions after taking office on August 3.
Rowhani said, without elaborating, that he would fight for "all of Iran's rights and the nation's demands."
Iran insists its nuclear activities are aimed at civilian applications, under which it has the right to enrich uranium, whose highly enriched form can be used as the fissile core of an atomic bomb. The West and Israel suspect that the drive hides military objectives.
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