The Indian rupee depreciated to a two-week low of 86.27 against the US dollar, following a trend influenced by a weaker Chinese yuan and a stronger dollar index. The increase in corporate dollar demand coincided with a recovery in the equity market, while the supply of dollars towards the year-end dried up. The depreciation of the Chinese yuan, in response to US tariffs, exerted pressure on the rupee and other Asian currencies, with the Indonesian rupiah also reaching a record low. The currency market is closely watching these developments as they unfold.