Thursday, June 20, 2013

Weakening Nepali rupee

On 7 October 2012, the exchange rate was NRs 82.39 per US dollar. On 20 June 2013, it was NRs 93.65 per US dollar. It indicates a nominal depreciation of about 14%. Compared to the level in 16 July 2011, the nominal depreciation is about 32%. In the last twenty days, the depreciation is about 4%. 

Since Nepal has pegged its currency to the Indian rupee, the exchange rate closely follows the path of the Indian rupee against the dollar. More on the recent rocky path of rupee later.