KATHMANDU, Oct 14 - The Nepali rupee rose to its highest level against the dollar since 1998 this week on the back of the strengthening of the Indian rupee. As Nepali currency is pegged with the Indian unit, its value is determined by the latter.
The rupee closed at Rs 63.20 a dollar at the end of the week as compared to Rs 63.50 on Sunday.
Market watchers said as the Indian currency is rising on the back of continuing foreign support for its booming economy, it has direct impact on the Nepali unit. The rupee has seen a rise of 12 percent against its US counterpart this year.
Foreign demand for Indian shares and high level of foreign investment have helped propel the currency upwards, they said.
But economists warned that the rise of the Nepali currency could be negative for exporters.
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