Rupee bounces from record lowThe Nepali rupee has recovered slightly after hitting an all-time low against the US dollar as the Indian rupee, to which it is pegged, closed stronger as the week ended.
The Nepali rupee has recovered slightly after hitting an all-time low against the US dollar as the Indian rupee, to which it is pegged, closed stronger as the week ended.
The rupee, which had plunged to Rs110.28 per US dollar on Friday, will open for trading at Rs109.77 on Saturday, according to the reference rate published by Nepal Rastra Bank (NRB). The exchange rate fixed by the central bank will remain valid till Sunday.
The Nepali rupee will gain Rs0.51 per US dollar when the markets open on Saturday as the Indian rupee closed higher on Friday.
NRB refers to the late afternoon exchange rate in India to set the next day’s exchange rate for the Nepali market.
The Indian rupee opened at IRs68.73 against the greenback on Friday, touched a high of IRs68.36 and a record low of IRs68.86, before closing at IRs68.47, according to LiveMint.
The Indian rupee has lately come under pressure as foreign investors are offloading Indian assets, such as shares and bonds, on expectations that the US Federal Reserve will increase interest rates next month.
The current wave of fund outflows, however, is unlikely to match that of the so-called Taper Tantrum when the then Federal Reserve Chairman Ben Bernanke’s signal to reduce monetary stimulus sent a shock wave through global markets, according to BlackRock Inc.