U.S. Dollar Increased By Nearly 17% So Far this Year; Hits All-Time High Against Nepalese Currency

The dollar is currently hanging near levels it hadn't seen in 20 years on the U.S. Dollar Index. According to Forbes, it has increased by 8% since the beginning of the year and by 17% so far this year.

Since Nepal's currency is tied to India's, the decline in the value of the Nepali rupee is mostly due to the decline in the Indian rupee's value against the US dollar during the same period. In simple terms, it means that when the Indian currency is strong, the Nepali currency automatically strengthens and when it is weak, the opposite occurs.

The value of the Indian rupee in relation to the US dollar is determined by supply and demand. The value of the Indian rupee decreases when demand for US dollars increases and vice versa. The Indian rupee's current depreciation against the US dollar is also having an impact on Nepal's economy. In order words, the Nepali economy is 1.6 one. That is, for every impact on the Indian Rupee, we get hit 1.6 times.

In light of the US dollar index's ongoing rise, the Nepali rupee continues to fall as the dollar strengthens. To exchange one dollar, Nepalis must spend Rs 133.14 (Latest).