Dollar Busts Previous Record, Reaches All-time High of Rs 126.70

The US dollar climbed above Rs 126.70 in the buying rates on Wednesday morning, reaching a new all-time high and breaking its previous day's record which breached the Rs 126.03 mark.

According to Nepal Rastra Bank (NRB), the day's start saw the greenback appreciating by Rs 0.67 from the previous day's close and reaching Rs 126.70 (buying) and Rs. 127.30 (Selling) around 11 am in the interbank trade.

Over the last few days, the dollar has been slowly increasing. The Nepali rupee continues to fall as the dollar strengthens. To exchange one dollar, Nepalis must spend Rs 126.70.

When the dollar rises in value, only the tourism industry, exporters, and remittance sectors benefit. Although Nepal has a competitive advantage in remittances and exports, the cost of imported items appears to be high due to significant imports. With rising prices, the situation is likely to worsen. The cost of borrowing from foreign donors rises in tandem with the strength of the dollar.