The Indian rupee fell to a two-month low on Thursday, breaching the 96-per-dollar mark. It touched 96.3150 against the US dollar, down half a per cent.

Surging US Treasury yields and persistent foreign selling are behind the fall. The US 10-year yield touched 5.3 per cent, its highest level since 2002, drawing money away from emerging markets.

Foreign portfolio investors have sold more than Rs 3.05 lakh crore from Indian equities in the first nine months of 2026, according to NSDL data. That breaks all previous annual records for foreign outflows.

High crude prices are adding to the pressure. Brent crude hovered near $100 a barrel, widening India’s import bill. The rupee has performed worse than most regional currencies in recent weeks.

Indian equity benchmarks also extended their losing run to an eighth straight week, the longest stretch of weekly declines since 2001. The Nifty 50 fell 3.1 per cent for the week to close at 22,421.95, while the Sensex slipped 0.79 per cent to 71,909.70 on Thursday. Analysts say pressure will continue as long as US rates stay high and oil prices remain elevated.