KATHMANDU, MAY 31, 2012
The Nepali rupee slid to a record low against the US dollar as the Nepal Rastra Bank (NRB) fixed the exchange rate at Rs 90.04 a dollar for Thursday—13 paisa down its previous low of Rs 89.91 on May 24.
The Nepali unit’s depreciation—by over 12 percent since March—against the US dollar is mainly due to its peg with the free-falling Indian currency, which reached to as low as IRs 56.20 a dollar on Wednesday afternoon. The Indian currency later recovered to IRs 55.67 per dollar at closing.
Indian media have blamed worsening global risk environment and concerns about India’s fiscal and economic challenges for the weakening of the Indian currency. Even the Reserve Bank of India’s intervention to curb the Indian rupee’s depreciation was fruitless. Indian media have reported that RBI has announced a string of measures to curb the rupee’s fall, none of which has so far succeeded.
According to a report in Indian newspaper ‘The Hindu’, currencies of Myanmar, Malawi, Brazil, Nepal, Swaziland, Namibia, Lesotho, South Africa, Bhutan and India are the ten worst-performing currencies.
Source: The Kathmandu Post
The Nepali rupee slid to a record low against the US dollar as the Nepal Rastra Bank (NRB) fixed the exchange rate at Rs 90.04 a dollar for Thursday—13 paisa down its previous low of Rs 89.91 on May 24.
The Nepali unit’s depreciation—by over 12 percent since March—against the US dollar is mainly due to its peg with the free-falling Indian currency, which reached to as low as IRs 56.20 a dollar on Wednesday afternoon. The Indian currency later recovered to IRs 55.67 per dollar at closing.
Indian media have blamed worsening global risk environment and concerns about India’s fiscal and economic challenges for the weakening of the Indian currency. Even the Reserve Bank of India’s intervention to curb the Indian rupee’s depreciation was fruitless. Indian media have reported that RBI has announced a string of measures to curb the rupee’s fall, none of which has so far succeeded.
According to a report in Indian newspaper ‘The Hindu’, currencies of Myanmar, Malawi, Brazil, Nepal, Swaziland, Namibia, Lesotho, South Africa, Bhutan and India are the ten worst-performing currencies.
Source: The Kathmandu Post
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