Nepali rupee plunged to an all-time low of 92.93 against the greenback when markets opened on Tuesday, as per Nepal Rastra Bank, after the Indian currency, with which Nepali rupee is pegged, fell to an all time low. Nepali currency was traded at 91.59 per US dollar on Monday. The previous all-time low was recorded at Rs 91.88 on June 24, 2012.
Although slump in value of currency usually bring smiles on the faces of exporters, this theory does not apply to Nepal as most of the exportable goods -- except few like agri-based products -- are manufactured using imported raw materials. So, slump in value of Nepali currency will make both imports and exports expensive.
However, the depreciation in value of Nepali rupee will bring smiles on the faces of remittance receivers as they will get more Nepali rupee while exchanging every US dollar.
Nepali rupee slipped to an all-time low after Indian currency fell as far as 57.98 against the dollar on Monday.
The downward pressure on Indian rupee began last month when US Federal Reserve Chairman Ben Bernanke suggested the US Federal Reserve"s quantitative easing program might begin to “taper” in September, rather than December as markets had been expecting, according to agencies.
Indian rupee also felt the pressure due to improved US job figures, which raised expectations that the US Federal Reserve quantitative easing program would peter out earlier than expected.
A Bloomberg survey showed that American employers took on 175,000 workers in May, more than the 163,000 median forecast. source-myrepublica.com
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