New Delhi, Oct. 7 -- The rupee may be "undervalued" as per many estimates, Reserve Bank of India Governor Sanjay Malhotra said on Wednesday, and assured that the banking regulator will support the currency to reach its "correct value".

Speaking to reporters on a day that saw the rupee inch towards an all-time low against the dollar, Malhotra said that while markets can be "irrational" in the short term, they reflect their right value in the long run.

"By a number of estimates, including the REER (Real Effective Exchange Rate), the rupee is not overvalued; it may be undervalued," Malhotra told reporters at the RBI headquarters in Mumbai. "We will ensure that the rupee stabilises, that the rupee finds its correct value, and we will suppor...