Rupee weakens to two-month low as oil climbs; state-run banks cushion

The rupee weakened 0.2 percent to 96.4575 per dollar, its lowest since May 21 and approaching its all-time low of 96.96, as Brent crude rose 2.5 percent to 90.3 dollars a barrel following US strikes against Iran. Goldman Sachs warned that further attacks on Middle East infrastructure could push oil back above 100 dollars, a risk particularly acute for India which imports about 90 percent of its oil. State-run banks stepped in with dollar sales to blunt the slide, a pattern of mild RBI intervention seen in recent sessions, while Nifty 50 fell 0.5 percent and the 10-year sovereign yield rose 3 basis points.