Rupee sinks to 96.31, logs biggest fall in over 2 months

The rupee dived the most in more than two months on a day India's prime equity gauges posted their longest losing run in a quarter century, falling half a percentage point to 96.3150 against the dollar.

Rising US bond yields dented emerging market currencies, evident in the sharp climb in the dollar index to 101.9.

The rupee closed the previous session at 95.83 a dollar. Its lowest close so far is 96.96 to a dollar, on May 20. It breached the psychological 96-level twice in three days.