Rupee drops to two-month low of 96.31/$ as global bond rout deepens, oil jumps

SENSEX 72,382.47

+ 472.77

NIFTY 22,555.75

+ 133.80

CRUDEOIL 8,679.00

 -237.00

GOLD 146,540.00

 -1,326.00

SILVER 226,199.00

+ 322.00

SENSEX 72,382.47

+ 472.77

NIFTY 22,555.75

+ 133.80

NIFTY 22,555.75

+ 133.80

CRUDEOIL 8,679.00

 -237.00

CRUDEOIL 8,679.00

 -237.00

GOLD 146,540.00

 -1,326.00

'; } document.getElementById("lgdv").innerHTML = htmlElements; } function numberformat(i) { return Number(parseFloat(i).toFixed(2)).toLocaleString('en', { minimumFractionDigits: 2 }) } async function gatherResponse(response) { const { headers } = response; const contentType = headers.get('content-type') || ''; if (contentType.includes('application/json')) { return await response.json() } return response.text(); } function getWidth() { if (Math.max(document.body.scrollWidth,document.documentElement.scrollWidth,document.body.offsetWidth,document.documentElement.offsetWidth,document.documentElement.clientWidth) > 991) { document.getElementById("mob").style.display = "none"; document.getElementById("lgdv").style.display = "block"; } else { document.getElementById("mob").style.display = "block"; document.getElementById("lgdv").style.display = "none"; } } getWidth(); THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS.THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS.

The 10-year US Treasury yield, a ​yardstick for borrowing costs and ‌asset prices globally, rose to 5.34%, its highest since 2002.

By Reuters

Updated - October 01, 2026 at 03:47 PM.

The rupee ended down 0.5% at 96.3150 per dollar, its sharpest single-day fall in more than ‌two months after it breached the key psychological barrier of 96 even as dollar sales by ‌state-run banks limited its fall. | Photo Credit: istock.com

The Indian rupee dropped to its weakest level in ​two months as global bond yields surged to decadal highs ‌and oil prices jumped, deepening pressure on the South ​Asian currency that was already hurt ⁠by foreign portfolio outflows on Thursday.

The rupee ended down 0.5% at 96.3150 per dollar, its sharpest single-day fall in more than ‌two months after it breached the key psychological barrier of 96 even as dollar sales by ‌state-run banks limited its fall.

Borrowing costs from the ‌US ⁠to France, Britain and Japan hit their highest ⁠in decades on Thursday, squeezing already pressured government finances, and threatening stocks, credit and other global assets.

The 10-year US Treasury yield, a ​yardstick for borrowing costs and ‌asset prices globally, rose to 5.34%, its highest since 2002.

Brent crude oil prices reclaimed the $100-per-barrel mark as well after China suspended oil products exports, potentially tightening fuel ‌markets already coping with supply shortages globally.

The multi-front ​pressures drove down stocks in Mumbai by about 1% while the yield on the 10-year ⁠benchmark bond rose to its highest level in over two years.

Supply disruptions, volatile energy prices and global uncertainty could ‌pose near-term risks to inflation, the rupee and capital flows, the Indian government said in a report on Thursday.

Prevailing pressures on the rupee have also kept exporters reticent about hedging their receivables even as importer hedging remains robust, exacerbating the demand-supply mismatch in the foreign exchange ‌market.

FX advisory firm IFA Global recommends that exporters should hedge cautiously ​and only to the extent of in-hand orders while importers are advised to hedge on any ⁠dips on the dollar-rupee pair.

Elsewhere, Asian currencies were down between ⁠0.1% and 0.4% while the dollar index rose 0.5% to nearly 102. Investors now await a ‌key US labour market report due on Friday, while Indian financial markets will be shut for a ​local holiday.

(Reporting by Jaspreet Kalra; Editing by Mrigank Dhaniwala, Nivedita Bhattacharjee and Janane Venkatraman)

Published on October 1, 2026

THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS. THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS. THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS. THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS.Sign into Unlock benefits!

• Access 10 free stories per month
• Get notified by email for early preview to new features, discounts & offers