Deutsche Bank sees Re over 54.2 if global weakness persists

The Indian rupee opened at Rs 52.85-52.86 per dollar as against previous day's closing of Rs 52.50 levels and is currently trading around Rs 52.77 levels.

Sameer Goel, head of Asia rates and currency research at Deutsche Bank feels rupee looks undervalued by 10-12% and oversold in the short-term. He also indicated that the weak global sentiment can last longer and Rs 54.20 per dollar could be breached if global weakness continues.
He also mentioned that the 10-year bond yield could slip to 8.5% again. Here is the edited transcript of his interview to CNBC-TV18. Also watch the accompanying videos. Q: Is the rupee oversold? Do you see it going back to Rs 51-52 levels?
A: It is oversold in the near-term. It is important to see what is driving the action in dollar-rupee. It