📰 Today’s Highlights – 4 August 2025
The Indian rupee weakened to ₹87.54/USD, losing about 1.2% over the past week, due to concerns around ongoing 25% U.S. tariffs on Indian exports, sustained foreign outflows, and importer dollar demand. Market attention now turns to the RBI policy decision expected later this week.
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The maturity of a $5 billion forex swap on Monday could drain ₹43,000 crore in rupee liquidity from the banking system unless partially rolled over.
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Officials confirm continued India–U.S. trade negotiations, with a U.S. delegation set to arrive in India later this month. Tensions persist over agricultural and dairy access, which remain unresolved.
Daily Current Affairs – MCQs (4 August 2025)
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**What was the rupee’s recent closing level?**A) ₹87.00B) ₹87.31C) ₹87.54D) ₹87.80Answer: C) ₹87.54Explanation: The rupee slipped to around ₹87.54/USD by Friday, down 1.2% for the week amid tariff concerns and foreign outflows.
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**What’s driving the rupee weakness?**A) Heat waveB) RBI rate hikeC) U.S. tariff fears and outflowsD) Surge in exportsAnswer: C) U.S. tariff fears and outflowsExplanation: Steep new U.S. tariffs and persistent capital exit have pressured the rupee.
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**Which RBI action might impact liquidity today?**A) Interest rate hikeB) Forex swap maturityC) Gold bond issuanceD) Digital rupee launchAnswer: B) Forex swap maturityExplanation: A $5 bn forex swap matures today, potentially draining ₹43,000 crore liquidity if rolled, complicating monetary conditions.
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**What are markets watching this week?**A) RBI policy decisionB) RBI liquidity recapitalizationC) Gold bond launchD) UPI expansion newsAnswer: A) RBI policy decisionExplanation: Focus is on whether RBI holds rates at 5.50%, given inflation and the growth drag from tariffs.
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**When will a U.S. trade delegation visit India?**A) Last weekB) Later this monthC) Mid‑SeptemberD) DecemberAnswer: B) Later this monthExplanation: India confirmed that a U.S. delegation will travel to Delhi later in August to resume stalled trade talks.
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**What remains a rub in trade talks?**A) Auto tariffsB) Dairy and agriculture import accessC) Technology transferD) Digital tradeAnswer: B) Dairy and agriculture import accessExplanation: U.S. continues pushing for entry into India’s agriculture and dairy markets, which India rejects to protect domestic farmers.
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**What’s the RBI likely to do on rates?**A) Raise by 25 bpsB) Hold at 5.50%C) Cut by 50 bpsD) Scrap benchmark rateAnswer: B) Hold at 5.50%Explanation: A Reuters poll signals steady rates amid subdued inflation and external risks, though some suggest rate easing is possible.
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**What’s the week’s projected rupee trading band?**A) ₹85.50–86.50B) ₹87.00–87.80C) ₹88.00–89.00D) ₹86.20–86.80Answer: B) ₹87.00–87.80Explanation: Analysts expect the rupee to trade within ₹87.00–₹87.80 this week, with bound volatility amid policy developments.
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**What do analysts warn about tariff impact?**A) No effectB) GDP boost of 50 bpsC) Potential drag up to 30 bpsD) Significant hyperinflationAnswer: C) GDP drag of up to 30 bpsExplanation: Economists forecast a drag of about 0.3% of GDP due to export slowdown from U.S. tariffs.
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**What’s the near-term outlook for the rupee going into RBI meeting?**A) Sharp rallyB) Volatile with slight depreciation biasC) Fixed peg implementedD) Fluctuate around ₹85Answer: B) Volatile with slight depreciation biasExplanation: With tariff risks, RBI swap maturity, and policy uncertainty, the rupee is expected to remain volatile with downward tilt near ₹87+.
✅ Summary:
Your quiz today covers rupee pressure from U.S. tariff fears and foreign outflows, the impact of an imminent RBI swap reversal, expectations from the upcoming RBI policy decision, stalled trade dialogue over agricultural market access, and the broader economic implications of sustained tariff shock.
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