Nepalese Rupee Weakens Against Dollar as Ukraine-Russia Crisis Intensifies, Oil Soars

Wed, Mar 9, 2022 11:32 AM on Latest, Economy, International, National,

The Nepalese rupee is falling against the US dollar amidst rising oil prices. Today, the Nepalese currency is trading in the range of Rs 122.36 to 122.76. According to Nepal Rastra Bank, the buying rate for the dollar is Rs. 122.76 whereas the selling rate is Rs.123.36. The Nepalese rupee had hit an all-time low of Rs 123.40 a US dollar this Monday, March 7, 2022.

As Nepal and India have pegged their currencies with the 1:1.6 exchange rate, the conversion rate of the Nepalese currency is impacted by the performance of the Indian currency. Since the Indian currency is getting weaker, the Nepalese rupee is following the same trend.

When the currency becomes weak, imports will get more expensive. The costly import will impact all sectors of the economy. A weak currency will slow down economic growth.