Indian rupee may crash to 70 per dollar in a month: Deutsche


The Indian rupee could crash to 70 against the U.S. dollar in a month or so, Deutsche Bank said in a report on Wednesday. The ominous forecast comes at a time when the partially convertible rupee has breached 64 to the dollar to a record low.
“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 Deutsche Bank wrote in the report.
“India, we fear, is entering such a zone”.  Many analysts had forecast in July that the rupee is headed to 65-70 levels, so in a sense the Deutsche Bank’s forecast does not ring alarm bells in the current scenario.

In the last week of June, when the rupee was still trading around 60 levels, Nomura’s forex valuation analyst had said the rupee can slide all the way to near 70.
Mohammed Apabhai of Citi had told NDTV in early July that the rupee might stabilize around the mid-60s levels….

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