New Delhi, May 25 -- The Indian rupee is not overvalued and may, in fact, be undervalued after its recent slide, Reserve Bank of India Governor Sanjay Malhotra said in an interview with Mint. This comes in the backdrop of the currency approaching the psychologically-significant 100-per-dollar mark amid the ongoing war in West Asia.

"With the recent depreciation, it would be reasonable to think that rupee is not overvalued. If anything, one could argue that rupee has become undervalued, both in nominal as well as in Reer (real effective exchange rate) terms," Malhotra said.

He reiterated that the RBI does not target any specific exchange-rate level and would intervene only to curb abnormal and high volatility or undue speculation.

The g...