The Indian rupee is experiencing its worst week in five years, with the weakness of the yuan eroding the sense of risk. Also, the pound reached a new low since 1985 against the dollar.

The Indian rupee had its worst week in five Fridays as risk sentiment was affected by the Chinese yuan weakening above $7 per dollar to break through a level psychological key for the first time in two years. The partially convertible rupee closed 0.1% at 79.74 per dollar, recovering some of the losses from the day it hit its lowest level in a week. For the week, the rupee fell by 0.2%, its biggest loss since the week ended August 12.

The British pound fell against the dollar on Friday, plunging to a new low since 1985, undermined by fears of a recession in the fuelled U.K. Owing to disappointing retail sales data for August, the pound was losing 0.77% to 1.1379 dollars around 09:20 GMT (11:20 CET), after dropping to 1.1351 dollars, the highest level in 37 years. Since the start of the year, the British currency has depreciated by around 15% against the greenback.

Meanwhile, the dollar index rose 0.4% to 110,13, not far from its two-decade high of 110.79 at the beginning of the month.