US Dollar Against Nepali Rupee Reaches All Time High; NPR stands at Rs.126.05 against USD

The US Dollar has stood at an all-time high as of today against the Nepali Rupee. The buying and selling rates of 1 USD reached NPR 126.05 and NPR 126.65 respectively. Likewise, the USD NPR was 125.74 (Buy) and 126.34 (Sell) yesterday.

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 126.05.

Because of the intensifying confrontation between Russia and Ukraine, the dollar has gained dramatically. The war between Russia and Ukraine has devalued the Indian rupee. The exchange rate of the Nepalese rupee is constant against the Indian rupee. As a result, as the Indian rupee fell, so did the Nepalese rupee. Likewise, the Indian Rupee stands at 160 (Buy) and 160.15 (Sell) as of June 30, 2022.

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.