The Indian rupee, which last week slipped to its record low of more than 65 against the US dollar, is expected to regain strength in the coming months.

Economists are of the view that the government's various ongoing efforts would help rupee regain strength against the greenback and revert below 60 to the US dollar.

The government's various efforts to boost growth stabilize the economy includes increase in duty on imports of non-essential things, which will slash the country's huge current account deficit (CAD). In the last financial year, the country's CAD hit a record high of $88.2 billion (4.8% of the gross domestic product). The government now aims to bring CAD down to $70 billion (3.7 per cent of GDP) during the current financial year.

Bankers and economists also believe that rupee is currently undervalued by nearly 10 per cent. In its recently-published economic research report, State Bank of India (SBI) - the largest state-owned lender of India, said, "Even as the rupee continues to trade below 60, a simple back-of-the-envelope calculation suggests that based on the six-currency REER trends a correct value of the rupee may be closer to 58 to the dollar."

Improvement in CAD along with better NRI remittances and foreign direct investment (FDI) will provide strength to the domestic currency, unless some big adverse event pushes the economy into risk.

Since 22nd of May this year, the rupee has shed nearly 16 per cent against the US dollar.