The Nepali rupees continue to weaken against the greenback as a unit of the US dollar will fetch more than Rs 95 today looking up to touch Rs 100.
The central bank has fixed Rs 95.39 as a reference buying rate, whereas it has fixed the selling rate for the dollar at Rs 95.99 for tomorrow.
The Indian rupee — with which the Nepali currency (NPR) is
pegged — tanked to its lowest ever at Indian rupee 60, due to the US Federal Reserve's announcement that it is going to taper down its third round of quantitative easing starting the end of 2013.
The Fed’s plan to wind down bond-buying by mid-2014 not only affected the Indian currency but also contributed in the tanking of currencies across the globe, surging bond yields worldwide and pushing global stock markets to the red, plunging commodities prices and adding strength to the dollar.
Yesterday, Nepal Rastra Bank (NRB) had fixed the reference exchange rate at Rs 93.6 for buying and Rs 94.25 for selling. Commercial banks and money exchangers that fix their own exchange rates based on their own dollar trading in the foreign exchange market had started trading dollars at Rs 94 since this morning.
The expensive dollar will be favourable for export and remittance receipts while it will make imports from third countries dearer — items imported from China will also be expensive fueling the inflation, apart from costing country much for its debt payment.