The Indian rupee fell 0.2% to 95.9550 per dollar on Thursday, its weakest close in a week, as higher oil prices, limited progress in U.S.-Iran talks and rising global bond yields increased concerns about further interest-rate hikes. State-run bank dollar sales, likely on behalf of the Reserve Bank of India, limited the decline and kept the currency above 96, while traders expected it to remain under pressure near that psychological level on Friday. The 30-year U.S. Treasury yield reached its highest level since 2004, markets priced a nearly 70% chance of an October Federal Reserve hike, and ANZ forecast the rupee at 96.50 by December and 98.30 by the end of next year.