The Nepali rupee, which witnessed a record overnight loss of Rs 2.20 against the US dollar on Monday, has gained 50 paisa after the Indian government assured that it is soon announcing
more measures to ensure enough liquidity in the
market.
Following the development, Nepal Rastra Bank fixed the selling rate of for a US Dollar at Rs. 77.40 for Tuesday’s trading from Monday’s Rs 77.90. Since Nepal maintains a fixed exchange rate with the Indian currency, any fluctuation in the Indian rupee is directly reflected in the domestic currency.
According to the online edition of The Economic Times, leading Indian forex dealers underlined that the Indian rupee drew support from the government’s statement that fresh measures were expected shortly to improve liquidity after
two rounds of Cash
Reserve Ratio (CRR) cuts last week.
The Reserve Bank of India slashed CRR by 1.5 percent, effective from October 11 releasing 600 billion Indian rupees in the system.
Meanwhile, the price of gold increased by Rs 300 in the local market to close at Rs 21,860 per 10 grams on Monday. Traders said the price of the precious yellow metal continued to edge up due to soaring international bullion prices and the strengthening of the greenback amid the current global financial turmoil.
The price of silver remained unchanged at Rs 313 per 10 grams in the market.
