Mumbai: The rupee could touch 70 level against the U.S. dollar in a month's time, although some revival of the currency is expected by the end of the year, Deutsche Bank said in a research note.

Rupee dropped by 8 paise to 63.33 against the American currency in the late morning trade today. The currency had hit a fresh intra-day low of 64.13 against the U.S. dollar.

"Fundamentally the rupee is undervalued and has overshot its equilibrium level substantially," the German banking major said adding "under a scenario of deep pessimism, currencies can overshoot substantially and remain so for a long time. India, we fear, is entering such a zone."

"We now believe that the rupee could touch 70 to the U.S. dollar in a month or so, although we expect some revival of the currency by the end of the year as the reality of taper turns out to be less disruptive down the road than it is now, and the current account deficit continues to decline," Deutsche Bank said.

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