Rupee falls to one-year low against US dollar

KATHMANDU, Dec 29 :

Nepal rupee fell to a one-year low of 101.4 against US dollar on Sunday as Indian currency, with which rupee is pegged, continues to depreciate against the greenback.

The Indian currency fell to 63.63 against US dollar on Sunday.

Nepal Rastra Bank (NRB) has fixed selling and buying rate of US dollar for Monday at Rs 102 and Rs 101.40, respectively.

Though the central bank had fixed selling price of US dollar at Rs 102 on Sunday, many commercial banks traded dollar at a higher price. Rupee had dropped to 11-month low of 101.01 against dollar on December 16. The local currency has not been able to climb back since then.

According to Indian newspaper Financial Express, on an annual basis, Indian rupee has lost ground for at least fourth year in a row, although the decline remains much lower at about 2 percent against the US greenback so far in 2014. In comparison, the Indian rupee had depreciated by over 11 percent in 2013 and by more than 18 percent in 2011. The decline was relatively smaller at about 3 percent in 2012.

“After remaining stable for most part of the year, the Indian rupee showed some depreciation in later part of November and early December. The recent fall in the rupee was on account of widening trade deficit, increased domestic demand for the dollar and global uncertainty,” Financial Express quoted analysts.

GOLD PRICE UP

Gold price increased by Rs 300 per tola (11.64 grams) to Rs 52,000 on Sunday.

Federation of Nepal Gold and Silver Dealers´ Association fixed gold trading price at Rs 52,000 per tola on Sunday, rise in the price of the yellow metal in the international market.

Price of silver, however, remained unchanged at Rs 700 per tola.

Source: MyRepublica