MUMBAI (Reuters) - Rupee and bonds weakened on Thursday after the U.S. Federal Reserve signalled it may increase its policy rates at the next meeting in December, stoking fears of foreign fund outflows from domestic markets.
The U.S. Federal Reserve kept interest rates unchanged on Wednesday, but downplayed global economic headwinds, leaving the door open for a rate hike in December.
At 9:07 a.m., the rupee was at 65.1800/65.1875, compared with its previous close of 64.9175/64.9275.
The 10-year benchmark bond yield rose 2 basis points to 7.61 percent.
(Reporting by Neha Dasgupta and Swati Bhat; Editing by Anand Basu)