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Bank of America

FX Outlook 2026: Structural Dollar Headwinds

LIVE5 December 2025USD bearish
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USD/INR

INR supported by RBI reserve accumulation slowing and improving portfolio flows.

Moderately Bullish

BofA Forecast Path

Cross-Firm Forecast Comparison

Key Drivers

Portfolio flows improving
RBI policy shift
Growth premium
Low beta defensive

All Firm Targets (Dec '26)

JPMNeutral88.60
GS86.50
ING86.50
MUFG86.50
BARCNeutral86.50
MS86.00
BofAModerately Bullish85.50
DBModerately Bullish85.00

Analysis Summary

INR supported by RBI reserve accumulation slowing and improving portfolio flows. India's growth premium vs EM peers provides fundamental support, though low beta limits upside.