Rupee falls to over 27- months low

Kathmandu December 10- The Nepali currency has fallen to over a 27-month low, as the Indian rupee, with which the country’s currency is pegged, came under pressure in mid-day trade.

Nepali rupee will open for trading at 107.24 against the US dollar on Thursday, shows the reference rate of Nepal Rastra Bank (NRB), the central bank. This exchange rate is the lowest in over 27 months.

The last time the rupee had fallen to this level was on September 5, 2013, when the exchange rate stood at 107.83.

Nepali rupee’s rise and fall depends on the movement of the Indian currency because Nepali rupee is pegged to the Indian rupee at 1.6.

On Wednesday, Indian currency opened for trading at 66.83 per dollar, slightly higher than Tuesday’s close of 66.84. But the value of the Indian currency depreciated to 66.92 in mid-afternoon following heavy dollar demand — albeit recovery was made shortly and it closed at 66.83.

Since Nepal Rastra Bank fixes exchange rate for the next day based on mid-day exchange rate of Indian rupee vis-à-vis dollar, Nepali rupee will trade at over a 27-month low on Thursday.