Nepal Rastra Bank, the central monetary authority, has fixed the exchange rate with US dollar for Saturday and Sunday at 99.02, marking a los of 44 paisa compared to Friday´s exchange rate. Rupee had set the previous low of 98.60 against the greenback on August 6. The Indian currency plunged to record low of 62.03 against US dollar on Friday.[break]
According to Reuters, the Indian rupee fell to a record low on Friday as measures to curb foreign currency outflows were seen as the latest roll of the dice by policymakers struggling to defend the currency in a slowing economy and a toughening global investment environment.
“Policymakers have cobbled together a slew of steps over the past month in a bid to halt the rupee´s slide, including the Reserve Bank of India´s extraordinary steps on July 15 to drain cash from the system and raise short-term interest rates in an economy already growing at a decade low. Yet none of the steps unveiled so far have convinced investors that India can attract overseas investments, which is seen as essential in narrowing a record high current account deficit that is the biggest source of the rupee weakness,” mentions Reuters.
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Nepali rupee slides to a record low against USD; $1=Rs 133.57
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