📰 Today’s Highlights – 27 July 2025
The Indian rupee concluded its third straight week of decline, finishing at ₹86.5150/USD, after briefly dipping to ₹86.6250. Weak domestic equity markets and sustained foreign portfolio outflows continued to exert pressure, although exporter-driven dollar sales helped curb deeper losses. India and New Zealand wrapped up the second round of FTA negotiations in Delhi, spanning July 14–25. A third round is now scheduled in New Zealand this September, as part of India’s broader pursuit of global trade pacts.
Daily Current Affairs – MCQs (27 July 2025)
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**What was the rupee’s closing rate today?**A) ₹86.00B) ₹86.3000C) ₹86.5150D) ₹86.8000Answer: C) ₹86.5150Explanation: The rupee rebounded from intraday lows (~₹86.6250) to close at ₹86.5150, marking its third consecutive weekly decline.
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**What primarily caused the rupee's weakening?**A) RBI hawkish policyB) Rising oil pricesC) Weak equities and foreign portfolio outflowsD) Trade surplusAnswer: C) Weak equities and foreign portfolio outflowsExplanation: Losses in Sensex and Nifty alongside sustained FPI outflows applied downward pressure; exporter dollar sales helped limit losses.
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**During what timeframe were India–New Zealand FTA talks held?**A) July 1–7B) July 14–25C) August 1–10D) July 22–27 onlyAnswer: B) July 14–25Explanation: The second round of comprehensive FTA negotiations concluded in Delhi during this window.
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**What city will host the next FTA negotiation round in September?**A) WellingtonB) AucklandC) New DelhiD) ChristchurchAnswer: A) WellingtonExplanation: The third negotiating round is scheduled to take place in New Zealand in September, with virtual sessions beforehand.
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**How much did India–New Zealand trade grow year-on-year?**A) 25%B) 35%C) 48.6%D) 60%Answer: C) 48.6%Explanation: Bilateral merchandise trade rose about 48.6% in FY2024–25 to $1.3 billion.
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**What is the main goal of the India–New Zealand free trade talks?**A) Focus only on agricultureB) Comprehensive increase in trade, services, investmentC) Limit Indian exportsD) Expedite student mobilityAnswer: B) Comprehensive increase in trade, services, investmentExplanation: Talks cover goods, services, investment facilitation, seeking a forward-looking and balanced agreement.
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**Which financial institutions expect the rupee’s decline to pause near ₹86.50–87.00?**A) Goldman Sachs & CitiB) Barclays & BofAC) ANZ & MUFGD) ICICI & HDFCAnswer: B) Barclays & BofAExplanation: Barclays sees depreciation nearing limits around ₹86.50–87, while BofA stays bullish, anticipating rupee strength later in the year.
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**What metric suggests that the rupee remains undervalued?**A) USD indexB) Nominal and real effective exchange rate (REER)C) FDI inflow rateD) Foreign currency reservesAnswer: B) Nominal and real effective exchange rate (REER)Explanation: A REER reading around 100.36—the lowest since May 2023—indicates improved FX competitiveness and undervaluation.
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**What downward bias is the rupee expected to test?**A) ₹86.20–86.30B) ₹86.70–86.80C) ₹86.90–87.00D) ₹87.50–88.00Answer: B) ₹86.70–86.80Explanation: One-month forward rates imply weakening toward 86.70–86.80 levels amid capital outflows and regional FX softness.
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**Which upcoming events loom large in shaping currency expectations?**A) India’s monsoon updateB) RBI rate reviewC) Fed & BoJ meetings plus U.S. tariff deadlineD) India–EU trade deal finalizationAnswer: C) Fed & BoJ meetings plus U.S. tariff deadlineExplanation: Markets await Federal Reserve and Bank of Japan policy decisions, plus the August U.S. tariff deadline, to gauge global risk sentiment impacting the rupee .
✅ Summary:
Today’s quiz explores the rupee’s ongoing depreciation driven by equity losses and foreign outflows, India’s advancing FTA negotiation with New Zealand, and the broader geopolitical and macroeconomic events poised to influence currency markets in the days ahead.
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