📰 Today’s Highlights – 10 August 2025
India’s foreign exchange reserves plunged by approximately USD 9.32 billion to around USD 688.87 billion for the week ending 1 August, highlighting aggressive RBI intervention to stabilise the rupee amid ongoing U.S. tariff pressure. However, even with this decline, the reserves remain sufficient to cover an estimated 11 months of merchandise imports—a reassuring buffer for the economy.
Meanwhile, the RBI reportedly sold at least USD 5 billion in forex to prop up the rupee, which was under stress nearing its record low as U.S. tariffs took effect.
The rupee ended flat at ₨87.66/USD, as importer dollar demand offset gains from a weaker U.S. dollar and NDF revival.
In corporate markets, India is seeing a surge in bond financing: companies are set to raise at least ₹300 billion in the next few weeks as they pivot away from bank loans toward cheaper bond funding—building on a record ₹4.07 trillion raised from April to July.
Daily Current Affairs – MCQs (10 August 2025)
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By how much did India’s forex reserves fall by 1 August?A) USD 5 billionB) USD 9.32 billionC) USD 15 billionD) USD 2 billionAnswer: B) USD 9.32 billionExplanation: The RBI’s balance sheet reflected a sharp ₹9.32 billion drop in reserves due to currency support operations.
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After the drop, to what level did reserves approximate?A) USD 700 billionB) USD 688.87 billionC) USD 680 billionD) USD 695 billionAnswer: B) USD 688.87 billionExplanation: Weekly figures show reserves settled at approximately USD 688.87 billion.
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How many months of import cover do the reserves now provide?A) 6 monthsB) 9 monthsC) 11 monthsD) 12 monthsAnswer: C) 11 monthsExplanation: Despite declines, reserves still provide approximately 11 months of merchandise import cover.
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How much did the RBI reportedly sell to support the rupee?A) USD 1 billionB) USD 3 billionC) USD 5 billionD) USD 10 billionAnswer: C) USD 5 billionExplanation: RBI is estimated to have sold at least USD 5 billion across markets to defend the rupee.
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How did the rupee end trading today?A) Stronger at ₨87.50B) Weaker at ₨88.00C) Flat at ₨87.66D) Volatile but closed at ₨87.80Answer: C) Flat at ₨87.66Explanation: After early gains, importer demand offset strength and saw the rupee finish flat at ₨87.66/USD.
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What offset rupee gains early in the session?A) Greek crisisB) Importer dollar demandC) Positive trade dataD) RBI rate cutAnswer: B) Importer dollar demandExplanation: Dollar demand from importers nullified the optimism from weak U.S. dollar and NDF gains.
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How much are firms expected to raise via bonds in coming weeks?A) ₹100 billionB) ₹200 billionC) ₹300 billionD) ₹400 billionAnswer: C) ₹300 billionExplanation: Corporates plan to issue at least ₹300 billion in bonds to tap cheaper capital.
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How much had been raised in bond markets from April to July?A) ₹2 trillionB) ₹3 trillionC) ₹4.07 trillionD) ₹5 trillionAnswer: C) ₹4.07 trillionExplanation: This sum marks the highest such haul in a fiscal year's first four months.
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Why are firms favoring bond markets now?A) Higher interest ratesB) Faster approval processC) Lower cost and better liquidityD) Better stock market sentimentAnswer: C) Lower cost and better liquidityExplanation: With past rate cuts and liquidity injections, bond financing is more efficient than bank loans.
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Which upcoming global data may affect the rupee’s direction?A) U.S. inflation dataB) Chinese GDP reportC) Eurozone unemploymentD) OPEC meeting outcomeAnswer: A) U.S. inflation dataExplanation: Market focus remains on U.S. July inflation, which could influence Fed policy and the rupee.
✅ Summary:
Today’s quiz covers key developments like significant forex reserve decline and RBI interventions, flat rupee performance, record corporate bond activity, and the macroeconomic signals tied to U.S. inflation.
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