Rupee slumps to new low of 109.03 against USD

Nepali rupee will plunge to record low of 109.33 against US dollar on Wednesday, as per the exchange rate published by Nepal Rastra Bank (NRB) on Tuesday evening. This means Nepali rupee will post overnight loss of Rs 2.97 against the greenback. US dollar was exchanged at Rs 106.06 on Tuesday. The local currency had slumped to previous low of 108.9 on August 29. Nepal Rastra Bank (NRB) depreciated local currency against the greenback after Indian currency, with which rupee is pegged, weakened to 67.20 per dollar on Tuesday from Monday´s 66.01. The Indian currency had hit lifetime low of 68.85 against US dollar on August 28. According to news reports, Indian traders are cautiously waiting for US jobs data due out on Friday that could affect expectations about when the Federal Reserve will start tapering its monetary stimulus. The prospect of less easy money from the United States has caused an exodus from many emerging markets over the past few months, but India has fared worse than most because of its precarious deficits, according to Reuters. Indian rupee has lost over 19.5 percent against the dollar since the slide began in early May. Though stronger US dollar has brought cheers to remittance receiving families and exporters, economists have cautioned that the country will have to face higher trade deficit and high inflation in coming days with the rising cost of imports, including raw materials for local industries.