📰 Today’s Highlights – 16 July 2025
The Indian rupee remains stable near ₹86/USD, continuing to trade in a tight band with renewed interest in short-term volatility operations. Retail inflation forecasts signal a likely record low in July, paving the way for possible monetary easing. Markets are muted ahead of U.S. economic data, and the equity indices are expected to open flat, with cautious sentiment influenced by global inflation trends. India marks significant national observances today, with Prime Minister Modi paying tribute to freedom fighter K. Kamaraj, the postponement of marathon icon Fauja Singh’s passing tributes, and monsoon floods causing disruptions in northern states.
Daily Current Affairs – MCQs (16 July 2025)
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**Within what range has the rupee been trading over the past two weeks?**A) 85.00–85.50B) 85.20–85.30C) 86.50–86.60D) 84.80–84.90Answer: B) 85.20–85.30Explanation: The rupee remained boxed in a tight 50–60 paisa weekly band between 85.20 and 85.30, spurring interest in short-term volatility selling.
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**What has the 10-day realized volatility for the rupee dropped to?**A) 2.3%B) 4.3%C) 6.5%D) 8.1%Answer: B) 4.3%Explanation: It fell from above 6.5% to around 4.3%, reflecting calmer market conditions.
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**What are the key support and resistance levels for the rupee?**A) 85.00 support / 86.50 resistanceB) 86.00 support / 85.20 resistanceC) 86.00 support / 85.20–85.30 resistanceD) 85.30 support / 86.00 resistanceAnswer: C) 86.00 support / 85.20–85.30 resistanceExplanation: Support holds near ₹86, with resistance seen around the ₹85.20–85.30 zone.
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**Why are traders more active in selling short-term volatility options?**A) They expect high volatilityB) They expect the rupee to remain range-boundC) They anticipate a major rupee collapseD) They have insider informationAnswer: B) They expect the rupee to remain range-boundExplanation: Given the stable trading band, traders seek to profit from expected low volatility.
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**What’s the forecast for India’s retail inflation in July?**A) Record highB) Record lowC) StableD) Slightly higher than JuneAnswer: B) Record lowExplanation: SBI projects retail inflation may hit a multi-year low, opening space for accommodative policy.
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**How might low inflation impact RBI policy?**A) Force rate hikesB) No changeC) Provide room for rate cutsD) Leads to currency interventionAnswer: C) Provide room for rate cutsExplanation: With inflation cooling, RBI may consider lowering interest rates to spur growth.
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**How are India's equity benchmarks expected to open today?**A) Sharply lowerB) Sharply higherC) FlatD) VolatileAnswer: C) FlatExplanation: Nifty futures suggest a flat start, in line with Asian peers and awaiting US inflation data.
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**Which global factor is creating caution in markets?**A) OPEC decisionsB) US inflation dataC) Eurozone growthD) Oil price crashAnswer: B) US inflation dataExplanation: Markets await U.S. inflation figures to guide Federal Reserve policy and equity flows.
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**What national event did PM Modi observe today?**A) Gandhi’s birth anniversaryB) K. Kamaraj’s birth anniversaryC) Independence DayD) Labour DayAnswer: B) K. Kamaraj’s birth anniversaryExplanation: PM paid tribute to the freedom fighter on his anniversary.
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**Which states are facing floods and landslides due to the monsoon?**A) Kerala & KarnatakaB) Himachal Pradesh & RajasthanC) Gujarat & MaharashtraD) Andhra Pradesh & OdishaAnswer: B) Himachal Pradesh & RajasthanExplanation: Monsoon-caused floods and landslides continue in parts of Himachal and Rajasthan.
✅ Summary:
Today's quiz explores the rupee's stable trading zone, record-low inflation outlook, cautious market sentiment ahead of US economic data, flat equity expectations, and domestic monsoon and commemorative developments.
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