The Indian rupee fell 0.5% to 96.3150 per dollar on Thursday, its weakest level in two months and sharpest one-day decline in more than two months, after breaking below the key 96 threshold. Global bond yields reached decade highs, with the 10-year US Treasury yield rising to 5.34%, its highest since 2002, while Brent crude reclaimed $100 per barrel after China suspended oil-products exports. The pressure, compounded by foreign portfolio outflows, pushed Mumbai stocks down about 1% and lifted India's 10-year benchmark bond yield to its highest level in more than two years. State-run bank dollar sales limited the rupee's decline. The Indian government warned that supply disruptions, volatile energy prices and global uncertainty could create near-term risks for inflation, the rupee and capital flows. IFA Global advised exporters to hedge cautiously and only against in-hand orders, while recommending that importers hedge during dips in the dollar-rupee pair. Investors are awaiting a key US labor-market report on Friday, and Indian financial markets will be closed for a local holiday.