Is the rupee undervalued or is it overvalued?
The Indian currency appears fairly valued if one looks at price levels on the one hand and average purchasing power parity income levels on the other
Mumbai: Is the rupee fairly valued? This question is easier to ask rather than answer even at the best of times — and particularly so when the Indian currency is being hammered in the foreign exchange market. However, it still deserves attention since the exchange rate is the price that determines our economic interaction with the rest of the world.