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.