Re breaches 66 mark, FM says it is undervalued

With rupee breaching 66 mark, Finance Minister P Chidambaram today said the currency is undervalued and the government will endeavour to improve investor sentiment to help it find its appropriate level.
"At the moment we believe that the value of the rupee has overshot its true value...I am confident that the rupee will find its true (and) appropriate level", he told the Rajya Sabha during Question Hour.
The rupee has been consistently hitting record lows and breached 66 to a dollar in the intra-day today.
"We have to be patient. We have to be firm. We have to be clear headed... Only do the things we have to do in order to strengthen the fundamentals of the economy. I cannot say that the rupee will appreciate or depreciate in a given period", Chidambaram said.

The rupee, the Minister told reporters earlier in the day, "is undervalued...Every emerging market is challenged today. India is also challenged and the impact is also felt on the equity market as well as on the currency market."
The BSE sensex, the equity market barometer, declined by 3.3 per cent or 620 points during the intra-day trade.
"There are not just external factors, there are also domestic factors. We recognise that there are domestic factors. One of the domestic factors is that we allowed the fiscal deficit to be breached and we allowed current account deficit to swell because of certain decisions that we took during the period 2009 to 2011," he added.