📰 Today’s Highlights – 6 August 2025
India’s foreign exchange reserves plunged by approximately USD 9.3 billion, to about USD 688.9 billion as of 1 August, highlighting the RBI’s active intervention to support the rupee amid escalating U.S. tariffs and import demand.
The RBI Monetary Policy Committee (MPC) chose to maintain the repo rate at 5.50% and continue a ‘neutral’ stance, even as inflation eases to six-year lows and growth risks rise from trade tensions.
Meanwhile, President Trump announced an additional 25% U.S. tariff on Indian imports linked to its Russian oil purchases, raising total duties to 50%, further straining bilateral ties—despite ongoing trade talks and plans for diplomatic engagement later this month.
Daily Current Affairs – MCQs (6 August 2025)
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By how much did India’s FX reserves fall by 1 August?A) USD 1 billionB) USD 5 billionC) USD 9.3 billionD) USD 15 billionAnswer: C) USD 9.3 billionExplanation: The decline highlights RBI dollar sales to cushion rupee volatility following tariff pressures.
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What was the rupee’s main pressure driver in the week?A) Surging oil exportsB) U.S. tariff threats and importer dollar demandC) Domestic inflationD) Higher interest ratesAnswer: B) U.S. tariff threats and importer dollar demandExplanation: Persistent demand from oil importers and rising tariffs dampened near-term sentiment.
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What decision did the RBI MPC take regarding repo rate?A) Raised to 5.75%B) Cut to 5.25%C) Held at 5.50%D) Deferred the decisionAnswer: C) Held at 5.50%Explanation: The panel unanimously maintained the rate amid neutral policy stance and subdued inflation.
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Which stance did the RBI retain after its decision?A) AccommodativeB) NeutralC) TighteningD) UnchangedAnswer: B) NeutralExplanation: The RBI continues with its neutral outlook, balancing inflation and growth risks.
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What new tariff did the U.S. announce on Indian goods?A) Additional 10%B) Additional 25%C) Tariffs removedD) Temporary vetoAnswer: B) Additional 25%Explanation: This extra duty adds on top of the existing 25%, raising the total to 50% from mid‑August onward.
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What sparked the additional U.S. tariff?A) India exporting tech servicesB) India purchasing Russian oilC) Slow exports to U.S.D) India joining BRICSAnswer: B) India purchasing Russian oilExplanation: The tariff targets India’s continued import and resale of discounted Russian crude.
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How are U.S.–India trade talks described now?A) On the verge of successB) Collapsed over strategic misstepsC) Unaffected by tariffsD) Fully concludedAnswer: B) Collapsed over strategic misstepsExplanation: Negotiations broke down due to miscommunications, political differences, and breakdowns in high-level diplomacy despite prior progress.
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What GDP projection did RBI retain for FY26?A) 5.0%B) 6.0%C) 6.5%D) 7.0%Answer: C) 6.5%Explanation: Despite trade headwinds, RBI left the growth forecast unchanged at 6.5%, with inflation trending lower.
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What inflation reading did RBI highlight at MPC?A) 6-year highB) 4.5%C) 2.1%D) 5.2%Answer: C) 2.1%Explanation: CPI inflation hit a six-year low in June, supporting the case for a continued neutral stance.
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What is the near-term rupee outlook?A) Steady appreciationB) Range-bound above ₹86C) Volatile with depreciation risk around ₹88D) Fixed to the USDAnswer: C) Volatile with depreciation risk around ₹88Explanation: Elevated tariff risk and ongoing RBI intervention signal continued downward bias and volatility.
✅ Summary:
Today’s quiz captures the significant drop in FX reserves as RBI shields the rupee, the neutral repo rate decision by the MPC amidst economic uncertainty, the escalation of U.S. tariffs to 50%, breakdown in trade negotiations, and the cautious macro outlook moving forward.
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