KATHMANDU: The Nepali rupee will devaluate to a fresh all-time low vis-à-vis the US dollar of Rs 120.68 per dollar over the weekend.
The Nepali currency had hit all-time low against the US dollar on Friday at Rs 120.28 per dollar. Nepali rupee, which is pegged with the Indian currency, has slid against the dollar as the Indian rupee has come under pressure.
The rise and fall of the Indian currency directly affects the Nepali exchange rate. The Nepali currency has been on a free fall in line with the Indian rupee.
As Nepal is an import-based economy, plunging value of the local currency will make the country’s imports costlier, which in turn will stoke inflation and ultimately the entire economy.
A version of this article appears in print on March 21, 2020 of The Himalayan Times.