The rupee slipped past 96 to the dollar on Thursday, closing at 96.3150, its weakest level in two months. Here is what is driving it down and what it means for households.

Global bond yields are at decadal highs. The 10-year US Treasury yield touched 5.34 per cent, its highest since 2002, making dollar assets more attractive and pulling money out of emerging markets like India.

Brent crude has reclaimed $100 a barrel after China suspended October fuel exports. India imports most of its oil, so higher crude raises the import bill and weakens the rupee.

Foreign investors sold Indian shares worth Rs 9,484 crore on Thursday, continuing weeks of outflows that have pressured the currency.

What it means for you: a weaker rupee makes imports costlier, from petrol and diesel to electronics. It can push up fuel prices and transport costs, and add to inflation.

The Reserve Bank of India can intervene by selling dollars to steady the currency, and state-run banks already did so on Thursday to limit the fall.