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. The increase in corporate dollar demand, coupled with the recovery in the equity market, contributed to the rupee’s decline as the year-end dollar supply dried up. The yuan’s devaluation, which was a retaliatory measure against US tariffs, exerted pressure not only on the rupee but also on other Asian currencies, leading to the Indonesian rupiah reaching a historic low.