US Dollar Against Nepali Rupee Reaches All Time High; NPR stands at Rs.128.26 Against USD

The value of the US dollar has hit an all-time high in Nepal. According to Nepal Rastra Bank, the value of the US Dollar surged to Rs.128.26 on Tuesday setting a new high.

On Monday, one US dollar was exchanged for Rs 128.11. As a result of the Indian currency's decline versus the dollar, the Nepali currency has also declined since it is pegged to the Indian currency.

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.