Nepali currency drop to lowest point ever

Kathmandu: The value of Nepali rupee has dropped historically this week.

The Nepali rupee has been weak so far as the US dollar has appreciated. On Tuesday, Nepal Rastra Bank set the buying rate of US dollar at 122.84 paisa and the selling rate at 123.44 paisa.

That means you will now have to pay 123 rupees 44 paisa to buy one US dollar. The US currency has been steadily strengthening lately.

The US economy is getting stronger and the recent US-Russian war has had an impact on the US dollar. According to the Nepal Rastra Bank, the demand for dollar is high globally recently. When demand is high, prices rise.

The Nepalese currency has a fixed exchange rate with the Indian rupee. Therefore, for some time now, the Indian rupee has been depreciating against the dollar.

Economists have pointed out that a higher US dollar could have a negative impact on Nepal’s economy. As the dollar appreciates, foreign goods become more expensive for Nepalis.