The Indian rupee fell to a two-month low on Thursday. It dropped 0.5 per cent to close at 96.3150 per dollar. The currency breached the psychologically important 96-per-dollar level for the first time in two months. Rising United States Treasury yields and higher oil prices put pressure on the currency. The 10-year US Treasury yield climbed to 5.24 per cent, near a two-decade high. Persistent selling by foreign investors also weighed on the rupee. Foreign portfolio outflows were about 2.2 billion dollars in September. Dollar sales by state-run banks helped limit the fall. The weakness came amid a broader selloff in Asian currencies, with the dollar index near 102. Brent crude stayed elevated around 105 to 108 dollars a barrel on supply concerns. Markets see a high chance of another US Federal Reserve rate hike in October. Traders said the rupee may stay under pressure, though central bank support could limit losses.