Rupee at 11-month low against US dollar

KATHMANDU, Dec 17:

Nepali rupee plunged to an 11-month low of 101.01 against US dollar on Tuesday, after Indian currency, with which the rupee is pegged, fell to a 13-month low against the greenback.

According to Reuters, Indian currency fell to 63.70, its weakest against the dollar since November 13, 2013, and bonds plunged as markets in the region tumbled on fears about the global economy, raising doubts about whether India can afford to cut interest rates given risks that such a move could trigger foreign outflows.

Nepali rupee will weaken further on Wednesday as NRB has fixed the exchange rate against US dollar at Rs 101.96.

According to Reuters, Trade Secretary Rajeev Kher said he was not too concerned about the Indian rupee´s falls to around 63 to the dollar, while a central bank official told Reuters “it is still not an alarming situation”. “I feel that if the rupee falls further down or stays for too long at this point, it should give me a reason to feel a little more concerned,” Reuters quoted Kher.

Source: Republica