Indian rupee suffers worst monthly drop

MUMBAI: The Indian rupee suffered its worst monthly drop in nearly three years on Thursday, weighed down by US tariff concerns and persistent portfolio outflows, with traders and analysts seeing little relief for the currency in the near term.

The rupee fell to an over five month low of 87.74 following US President Donald Trump’s threat of a 25% charge on Indian exports, alongside an unspecified penalty, starting August 1. It closed at 87.5950 down 0.2% on the day.

The currency was down 2% for the month, its worst fall since September 2022.

The Reserve Bank of India likely intervened to support the rupee on Wednesday and Thursday, traders said, but noted that the intervention was not too aggressive.