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Rupee could touch 70/USD in a month or so: Deutsche

Source : REUTERS
Last Updated: Thu, Aug 22, 2013 04:51 hrs
An employee uses an electronic machine to check an Indian currency note inside a bank in Allahabad

Mumbai: The rupee could touch 70 against the U.S. dollar in a month or so, although some revival is expected in the currency by the end of the year, Deutsche Bank said in a report on Wednesday.

"We continue to believe that fundamentally the rupee is undervalued and has overshot its equilibrium level substantially, but as numerous episodes of past currency crises have amply demonstrated, under a scenario of deep pessimism, currencies can overshoot substantially and remain so for a long time," economists at the bank wrote in the report.



"India, we fear, is entering such a zone".

The partially convertible rupee dropped to a record low of 64.13 per dollar on Tuesday and was trading at 63.38/42 on Wednesday, weaker than its close of 63.25/26.

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