The Nepali rupee dipped by 25 paise against the dollar in early trading Tuesday. The Nepal Rashtra Bank fixed the selling rate at Rs.76.85 and the buying rate at Rs.76.10 to the greenback. The slide of the rupee against the dollar began one month ago. The value of the Nepali rupee against the dollar has slipped by more than one percent in one month.

The slide continued as demand for the dollar rose in India following retaliatory strikes by the United States against targets in Afghanistan for the September 11 terror attacks against targets in New York and Washington.

The central bank had to adjust the exchange rate to maintain the cross exchange rate between convertible currencies and the Indian rupee.  The exchange rate with the Indian rupee is fixed while the rate is floated daily with convertible currencies.