Will the rupee touch 70/USD? Yes, in a month or so

The 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 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.