Key Highlights
- Despite the pressure, despite the relentless strength of the US dollar, despite a 12.1% real depreciation, BofA believes the Indian rupee is poised to strengthen to 86/USD by 2026.
- It’s not blind optimism.
- It’s a view rooted in a deeper reading of what’s happening beneath the rupee’s surface-level drama.
- The report argues that the recent slide reflects temporary distortions, not structural deterioration.
- As BofA puts it, “we continue to expect the USD to weaken next year, which should support INR appreciation.” In today's session, the rupee slipped 10 paise to 90.15 against the US dollar in early Tuesday trade, weighed down by strong dollar demand from corporates, importers and foreign portfolio investors.
