NEW DELHI (Reuters) - The value of the rupee will be decided by macroeconomic conditions, finance minister P. Chidambaram said on Thursday, adding that he expected some recovery in the currency after sharp losses since May.
Chidambaram said the current value of the rupee was a matter of concern but that the currency had been due a fall.
"The rupee has to find its value in the market depending upon macro factors," he told parliament.
Chidambaram reiterated that he was committed to meeting a tough fiscal deficit target for the fiscal year ending in March 2014.
"This is a year of fiscal consolidation," he told lawmakers. "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."
The fiscal deficit was 4.9 percent for the fiscal year ended March 31.
(Reporting by Rajesh Kumar Singh; Writing by Krishna Das; Editing by Frank Jack Daniel)