The Indian rupee weakened to around 88.6 per USD on Thursday, hitting its lowest level in two weeks, as the US dollar strengthened after Fed Chair Jerome Powell downplayed the likelihood of additional rate cut. The Fed’s relatively hawkish tone further pressured the rupee, already under strain from strong importer demand and NDF-related expiries. The Reserve Bank of India was seen providing support through state-run banks and likely intervening in the offshore market to curb sharp losses. Meanwhile, most market participants still expect a December rate cut by the RBI, with some forecasting further easing in February to bring the repo rate to 5% after recent data showed inflation fell to an eight-year low. Elsewhere, markets weighed the outcome of the meeting between US President Trump and Chinese leader Xi in South Korea, where the two sides agreed to extend their trade truce for another year.