The Indian rupee hit a one-month low of 86.0025 against the USD due to equity outflows, broken support levels triggering stop losses, and dollar demand. Despite this, forecasts predict a potential rupee rebound with improving inflows.

• Equity outflows & technical breaches pressured INR.
• Strong dollar demand from firms weighed on the rupee.
• BofA & peers are now bullish on the currency.