New Record High: Nepalese Rupee Hits 133.73 Against US Dollar, Raises Concerns

Fri, Dec 1, 2023 1:21 PM on Economy, National, Latest,

The Nepali currency faced a significant setback as the US dollar reached an all-time high, setting a new record at 133 rupees and 74 paisa today. This surpasses the previous record of 133 rupees and 70 paisa, reflecting a 4-paisa increase from the previous record. The escalating exchange rate now requires individuals and businesses to spend Rs. 133.74 to acquire 1 USD. 

As per Nepal Rastra Bank, the selling price of 1 USD reached Rs 133.74, while the buying price remained at Rs 133.14. The depreciation of the Nepali currency is attributed to the global surge in the value of the US dollar, coupled with the weakening of the Indian currency, which shares a fixed exchange rate with the Nepali currency. 

The repercussions of the depreciating rupee extend across various sectors. With the dollar's appreciation, the cost of imports is expected to rise significantly. As import transactions are predominantly conducted in dollars, the elevated exchange rate results in increased expenditures, affecting both consumers and businesses.

Furthermore, the burden of loans acquired by the state from foreign donor agencies is anticipated to increase, adding to economic challenges. While a stronger dollar may benefit the tourism sector, exporters, and remittance senders, experts caution that the disadvantages outweigh the advantages due to Nepal's heavy dependence on imports.

Experts highlight that the surging dollar could lead to inflationary pressures, impacting the domestic market. Authorities are closely monitoring the situation, emphasizing the need for strategic measures to stabilize the exchange rate and address the underlying causes of the Nepalese rupee's depreciation.