The US dollar has recently attained its highest value against the Nepali rupee, reaching a new record of Rs. 133.68 last Wednesday and continuing to rise. The latest statistics from Nepal Rastra Bank on this Sunday indicate a slight increase, with the current rate standing at Rs. 133.70, marking a 2-paisa uptick from the previous record. In practical terms, this means that 1 US dollar now requires 133 rupees and 70 paisa for exchange.
The depreciation of the Indian rupee in comparison to the US dollar has played a role in the weakening of the Nepali rupee. Given that Nepal maintains a fixed exchange rate with India, any fluctuations in the Indian currency have a direct impact on the Nepalese rupee.
The surge in the dollar’s value carries consequences, particularly making imports more expensive. As transactions for imports are conducted in dollars, a stronger dollar translates to higher expenditure. Furthermore, the appreciation of the dollar is expected to increase the burden of state loans from foreign donor agencies.
While a robust dollar may have advantages for sectors such as tourism, exporters, and remittance recipients, experts argue that the disadvantages are more significant due to the substantial share of imports in the Nepali economy.