📰 Today’s Highlights – 31 July 2025
The Indian rupee plunged to ₹87.42/USD, marking its steepest single‑day drop since May, driven by tariff fears (20–25% risk on U.S. trade cuts), importer dollar demand, and continued foreign outflows—even as the RBI likely intervened to cap losses. Markets remained jittery ahead of the Federal Reserve policy decision, with Chair Powell signaling no imminent rate cut, and lingering uncertainty over a India‑U.S. interim trade deal deadline on August 1. Despite this, L&T led a modest equity uptick thanks to strong earnings, though broader investor sentiment remained cautious.
Daily Current Affairs – MCQs (31 July 2025)
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**What was the rupee’s closing level today?**A) ₹86.8150B) ₹86.6650C) ₹87.11D) ₹87.42Answer: D) ₹87.42Explanation: The rupee fell to ₹87.42, its lowest since mid‑March, off nearly 0.7% in a single session.
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**What triggered the sharp decline in the rupee?**A) RBI rate hikeB) Fear of U.S. tariffs and importer dollar demandC) Surge in oil pricesD) Strong equity inflowsAnswer: B) Fear of U.S. tariffs and importer demandExplanation: Risk of 20–25% U.S. import tariffs and month‑end importer demand weighed heavily, alongside foreign portfolio outflows.
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**What was the scale of today’s decline?**A) 0.2%B) 0.5%C) 0.7%D) 1.0%Answer: C) 0.7%Explanation: The rupee dropped 0.7%—its biggest single‑day fall since May.
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**How did authorities respond to the decline?**A) Raised interest ratesB) Sold dollars to support the rupeeC) Lifted export curbsD) Tied rupee to a basketAnswer: B) Sold dollars to support the rupeeExplanation: RBI is believed to have intermittently sold dollars via state banks to limit the slide.
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**What major global event is due tomorrow?**A) India’s budget presentationB) U.S. Federal Reserve policy decisionC) Chinese tariff reviewD) RBI rate meetingAnswer: B) U.S. Federal Reserve policy decisionExplanation: Markets await the Fed decision and Powell’s commentary, which influence USD/INR sentiment.
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**What trade-related risk is looming?**A) U.S.–China trade pactB) India–EU tariff disputeC) India & U.S. August 1 deadlines for trade dealD) Japan–India customs renegotiationAnswer: C) India–U.S. August 1 trade deadlineExplanation: Delay in finalising U.S.–India interim deal has stoked fears of hefty tariffs on Indian exports by August 1.
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**Which company’s earnings supported market sentiment?**A) RelianceB) HDFC BankC) Larsen & Toubro (L&T)D) Tata MotorsAnswer: C) Larsen & ToubroExplanation: L&T’s better-than-expected Q1 earnings lifted its stock and provided modest support to indices.
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**How did the Indian equity benchmarks perform?**A) Fell over 2%B) Flat opening followed by modest gainsC) Reached record highsD) Highly volatile up-downAnswer: B) Flat then modest gainsExplanation: Nifty and Sensex were muted early but edged higher, supported by L&T amid caution.
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**How much did foreign investors withdraw this month?**A) $500 millionB) $1.6 billionC) $5 billionD) No net outflowsAnswer: B) $1.6 billionExplanation: FIIs offloaded ₹46.37 billion (
$532 million) on Tuesday, part of cumulative outflows ($1.61 billion) in July. -
**How is the near-term rupee outlook described?**A) Strong recovery to ₹85B) Mild depreciation bias near ₹87+C) Stable between ₹86.50–86.80D) High volatility with no directional biasAnswer: B) Mild depreciation bias near ₹87+Explanation: Analysts expect further modest downward pressure and volatility as the trade and policy risks persist.
✅ Summary:
Your quiz addresses today’s steep rupee drop amid tariff fears, importer dollar demand, and RBI intervention; equity jitters despite L&T earnings support; investor caution ahead of Fed policy and August 1 U.S. tariff deadline; and ongoing foreign investor outflows.
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