NEW DELHI (Reuters) - Finance minister P.Chidambaram said on Tuesday the rupee had overshot its true level and that the country was one of several emerging markets that was facing such pressures.
The rupee weakened to 65 to the dollar in opening trade after the lower house of Parliament approved a plan worth nearly $20 billion to provide cheap grain to the poor.
But Chidambaram said the government will stick to its target of reining in the fiscal deficit to 4.8 percent of the gross domestic product even after carrying out the food security programme.
(Writing by Sanjeev Miglani)