Rupee depreciation

Kathmandu, March 10:

Nepali rupee is loosing its ground as it has slipped to a record low of Rs 83.40 per dollar last Tuesday.

Though it is at Rs 83.05 per dollar today, it was at Rs 77.75 in the mid-January.

In comparison to mid-July 2008, the Nepali currency vis-à-vis the US dollar depreciated by 11.9 per cent in mid-January 2009, said the NRB.

“It had appreciated by 3.1 per cent in the corresponding period of the last fiscal year. The exchange rate of one US dollar stood at Rs 77.75 in mid-January 2009 compared to Rs 68.50 in mid-July 2008.” Indian ruppes that is pegged to Nepali rupee has slipped dragging the Nepali rupees down. The rupee against dollar has depreciated by around seven per cent in 2009 and 28.5 per cent in comparison to the exchange rate a year ago.

Any volatility in the Indian currency market directly affects Nepali rupee vis-à-vis the US dollar due to direct relation between the Nepali and Indian rupee. The Indian rupee is hovering around Rs 52 per dollar. However, price of gold is again rising in the international market due to heavy fall in the share markets.