KATHMANDU, Oct 3, 2012
Nepali rupee has reclaimed Rs 7.74 against a US dollar, enjoying gain of well over 8 percent over the last three-and-a-half month, as India´s commitment to stick to fiscal reforms and improvement on global risk sentiment helped it rally against the greenback.
Such assessment was made after Nepal Rastra Bank (NRB) on Tuesday announced that rupee will value at 84.14 against a USD when trading opens on Wednesday. The exchange rate of USD had hit a record high of Rs 91.88 on June 23, 2012.
Though currency trading in India remained closed on Tuesday due to public holiday, officials of Foreign Exchange Dealers Association of Nepal (FEDAN) said the exchange rate of USD for Wednesday was lowered taking Monday´s closing rates in India into consideration.
“When we set the rate for Monday, the market in India was still open. Hence, it had not reflected the closing figures,” said an official of FEDAN. “Now, Wednesday´s rate will reflect the final rates.”
With the gain announced for Wednesday, rupee has hit almost five-and-a-half month high against the USD. Rupee was valued Rs 83.59 per USD on April 24, 2012.
The gain by rupee, which can be attributed to its peg with the Indian Currency (IC), has brought cheers to the importers as it lowers their import costs. As this benefit is expected to be eventually transferred in the market, consumers that so long braved the brunt of sharp devaluation of rupee too can afford to heave some sigh of relief.
It has also brought some respite to the government for it can now service the foreign debt by spending relatively lesser rupee.
However, the gain of rupee will badly impact remittance receivers as it will drag down their actual receipts prior to the Dashain festival. This clearly means, families of some 2 million Nepali workers, who send back additional money to enable their dear ones enjoy the festival in a grand way, will be hurt, said an NRB official.
Source: Republica
Nepali rupee has reclaimed Rs 7.74 against a US dollar, enjoying gain of well over 8 percent over the last three-and-a-half month, as India´s commitment to stick to fiscal reforms and improvement on global risk sentiment helped it rally against the greenback.
Such assessment was made after Nepal Rastra Bank (NRB) on Tuesday announced that rupee will value at 84.14 against a USD when trading opens on Wednesday. The exchange rate of USD had hit a record high of Rs 91.88 on June 23, 2012.
Though currency trading in India remained closed on Tuesday due to public holiday, officials of Foreign Exchange Dealers Association of Nepal (FEDAN) said the exchange rate of USD for Wednesday was lowered taking Monday´s closing rates in India into consideration.
“When we set the rate for Monday, the market in India was still open. Hence, it had not reflected the closing figures,” said an official of FEDAN. “Now, Wednesday´s rate will reflect the final rates.”
With the gain announced for Wednesday, rupee has hit almost five-and-a-half month high against the USD. Rupee was valued Rs 83.59 per USD on April 24, 2012.
The gain by rupee, which can be attributed to its peg with the Indian Currency (IC), has brought cheers to the importers as it lowers their import costs. As this benefit is expected to be eventually transferred in the market, consumers that so long braved the brunt of sharp devaluation of rupee too can afford to heave some sigh of relief.
It has also brought some respite to the government for it can now service the foreign debt by spending relatively lesser rupee.
However, the gain of rupee will badly impact remittance receivers as it will drag down their actual receipts prior to the Dashain festival. This clearly means, families of some 2 million Nepali workers, who send back additional money to enable their dear ones enjoy the festival in a grand way, will be hurt, said an NRB official.
Source: Republica
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