The Indian rupee hit a two-week low of 86.27 against the US dollar, impacted by the strengthening of the dollar index and depreciation of the Chinese yuan. The increase in corporate dollar demand, coupled with the absence of year-end dollar supply, further added pressure on the rupee. The yuan’s decline, attributed to the ongoing US-China trade tensions, had a cascading effect on other Asian currencies, with the Indonesian rupiah also reaching a historic low. This depreciation in the value of the rupee reflects the broader trend in emerging market currencies facing headwinds due to global economic uncertainties and geopolitical tensions.