 |
Kathmandu Tuesday January 16, 2001 Magh 03, 2057.
|
Rupee appreciates
Post Report
KATHMANDU, Jan 15 - In a turn of events, Nepali currency appreciated by 30
paisa against the US dollar - the most powerful currency of the world. The exchange rate
of Nepali rupee against the US dollars in the forex market today fell from Rs 74.65 to Rs
74.35.
This is the first time in many years that the Nepali currency appreciated
against the greenback. Nepali rupee in the past six months had depreciated by over 7 per
cent.
"The slump in the demand of greenback is caused by the recent slashing
of interest rates in the US," said Yuba Raj Khatiwada, Chief Economic Advisor of
Nepal Rastra Bank.
Similarly, Pramod Rizal, president of Foreign Exchange Dealers’
Association of Nepal, said, "Appreciation of the Nepali currency comes as a result of
excess dollar holding with the banks and slumping demand of the greenback."
Nepal Rastra Bank, the central bank of the country, had to intervene in the
forex market a number of times lately to absorb the excess dollar holding of commercial
banks. Just a week ago, NRB had procured US $ 18 million from the market.
"The appreciation of the Nepali rupee against the dollar brings it more
realistic to the existing exchange rate of the dollar with the Indian currency," said
Rizal. Any fluctuation in the Indian rupee is automatically transferred to Nepali rupee,
which bears a fixed exchange with the Indian currency.
Though imports will get cheaper nominally, the latest appreciation of the
rupee would not be encouraging for exportable goods as it will erode their
competitiveness, albeit marginally, in the international markets. Woolen carpet and
ready-made garments, which occupies more than 80 percent of the total overseas exports, is
likely to be the sufferers.
Other Stories
|
