Rupee vs Dollar, Dec. 9 -- For months, India's currency story has sounded like a familiar cautionary tale. The rupee has slipped, sentiment has softened, and global uncertainty has cast long shadows across emerging markets. Yet Bank of America Global Research is making a contrarian call-one that cuts through the noise. 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, "...