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Posted by: cybernepali May 31, 2013

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REPUBLICA KATHMANDU, May 30: The Nepali currency has dropped to its lowest level since July 26, 2012 against the US dollar due to depreciation of the Indian rupee with which the domestic currency is pegged. Nepal Rastra Bank has fixed Friday´s exchange rate at a 10-month low of Rs 90.06 per dollar, down from Thursday´s Rs 89.79. The Nepali currency depreciated against the greenback as the Indian currency took a fall “on concerns that US policy makers will limit stimulus measures as the world´s largest economy recovers”. The Indian currency had fallen to IRs 56.3750 per US dollar on Thursday, the weakest level since July 25, 2012. Since the Nepali currency is pegged with Indian currency, any fluctuation in the Indian rupee affects exchange rates in Nepal. The latest loss in value of the Nepali currency is expected to raise prices of goods imported from third countries, as Nepali traders will have to pay more Nepali rupee to buy each US dollar. But this will benefit recipients of inbound remittances and exporters as they will get more Nepali currency while exchanging US dollars.

Published on 2013-05-30 23:33:38