Rupee could hit 70 to dollar: report
New Delhi, August 21, 2013
The Indian rupee could touch 70 against the US 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.
"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 were quoted as saying by The Times of India.
"India, we fear, is entering such a zone".
The rupee dropped to 64.52 against the dollar in afternoon deals, amid fresh measures announced by the Reserve Bank of India (RBI) on Tuesday to increase the availability of cash in the banking system.
More INTERNATIONAL NEWS Stories
- Blatter calls for calm over Qatar 2022 problems
- German factory orders fall 2 per cent
- US upbeat as jobless rate hits five-year low
- US ‘does not recognize China's air defence zone’
- Brent edges over $111; eyes on US jobs data
- NELSON MANDELA HAS DIED
- Europe braces for deadly hurricane Xaver
- 11 killed in Iraq mall attack
- EU slaps $2.3bn fine on top banks
- US lawmakers worried over Iran's enrichment ability