The Indian rupee depreciated to a two-week low of 86.27 against the US dollar, driven by the impact of a weaker Chinese yuan and a stronger dollar index. Corporate demand for dollars surged as the equity markets bounced back, while the supply of dollars at year-end dried up. The yuan’s devaluation, in retaliation to US trade tariffs, exerted downward pressure on the rupee and other Asian currencies, with the Indonesian rupiah also hitting an all-time low.