Rupee hits fresh low

KATHMANDU, AUG 07 -

The Nepali rupee has slid to a fresh low against the US dollar . The central bank has set the exchange rate at Rs 98.60 per dollar for Wednesday.

The depreciation of the Nepali rupee is due to the downfall of the Indian currency, with which it is pegged.

According to the Indian media, the Indian rupee on Tuesday plunged to a record low of IRs 61.80 per dollar . The growth in the US services sector in July has been attributed for the appreciation of the dollar . Earlier, the Nepali currency had reached Rs 98.05 per dollar on Sunday.

The rupee depreciation is expected to push up the prices of imported goods further. Akhil Chapagain, president of Nepal-Turkey Chamber of Commerce, said the impact has already been felt. “Prices of imported goods have increased by 5-10 percent due to appreciation of the US dollar ,” he said.

The rupee depreciation could also hit the cost of big projects which depend on imported construction materials. Besides, it also affects government’s cost of debt servicing.

Source: The Kathmandu Post