Rupee will find right value depending on macro factors: FM

The value of the rupee will be decided by macroeconomic conditions, finance minister P Chidambaram said today, 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.

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“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.”

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The fiscal deficit was 4.9 percent for the fiscal year ended March 31.

Reuters