Rupee languishes at two-month lows as supply worries raise oil prices

The Indian rupee fell to a two-month low, declining 0.3 percent to close at 96.5650 against the dollar, hurt by a more than 25 percent surge in oil prices this month on escalating U.S.-Iran tensions. Brent crude rose about 5 percent to over $95 per barrel as Iran-backed Houthis threatened shipping in the Red Sea, raising fears of wider energy costs, inflation, and a widening current account deficit. Indian stocks dropped around 1 percent while the 10-year benchmark bond yield edged higher, though the RBI's June policy package has so far attracted more than $20 billion to support the rupee.