Tuesday, June 11, 2013

Nepali rupee at historic low against dollar

The Nepali rupee has reached a historic low at Rs 93.19 for a US dollar as the Indian currency (INR) was not able to put any brakes on its free fall.
The reference rate determined by Nepal Rastra Bank (NRB) stands at Rs 93.19 as referential buying rate for tomorrow based on today's forex trading.
Likewise, NRB has fixed the selling rate for the dollar at Rs 93.73 for tomorrow. The dollar exchange rate had never risen above Rs 92 before. Yesterday, the rate was fixed at Rs 92.33 — another historic low for the domestic currency.
The Indian rupee (INR) — with which the Nepali currency (NPR) is pegged to — dropped to INR 58.98 — a record low — making the Nepali rupee dive along. INR is weakening along with major currencies worldwide including the euro, yen and Australian dollar, among others, as the dollar has become more attractive recently. Despite, the spotty US economic data, a decline in jobless claims along with better consumer confidence index is making the dollar stronger.
A strong dollar is desirable for exporters as their exports will fetch higher amount while imports will become expensive in the domestic market.

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