does eventually come, but it was now mostly factored into the market and he was confident that speculators had been put in their place.
"We think we have sent a message to everyone - don't speculate on the rupee," he said.
An urbane Harvard-educated lawyer now in his third stint as finance minister, Chidambaram is widely seen as a business-friendly reformer.
However, the weak coalition government of Prime Minister Manmohan Singh has struggled to push through reforms that might correct underlying economic imbalances, such as loosening strict labour laws and implementing a goods and services tax.
Chidambaram said a jump in spending on fuel and food subsidies must be tackled sooner rather than later as part of a series of steps to stabilise the economy. India imports nearly 80 percent of its oil needs and the rupee's drop has made government fuel subsidies more costly.
"On the government side, sooner (rather) than later we will have to address the issue of higher subsidies than budgeted, on both fuel and food," he said.
Last month, the government shied away from raising diesel prices by close to 10 percent to offset the financial damage Of the weaker rupee. Oil subsidies are now estimated at more than 900 billion rupees ($14.5 billion) - nearly 40 percent more than budgeted - for the current fiscal year.
The finance minister is unlikely to announce sweeping spending cuts, but he said he may rein in spending by some large government departments and would rigidly enforce rules that make it hard for ministries to fully utilise designated funds.