Dollar Hits Record High Against Nepali Currency

The US dollar climbed to a record high against the Nepali rupee this week, according to the latest foreign exchange rates published by Nepal Rastra Bank.

As per Wednesday’s rates, the central bank fixed the buying rate of one US dollar at Rs 143.50 and the selling rate at Rs 144.10. The Nepali rupee weakened further on Thursday, with the buying rate rising to Rs 144.01 and the selling rate to Rs 144.61, marking the highest level so far.

Nepal Rastra Bank also reported gains in other major foreign currencies. On Thursday, the buying rate of one euro stood at Rs 167.95, while the selling rate was Rs 168.65. Similarly, the UK pound sterling was traded at a buying rate of Rs 191.43 and a selling rate of Rs 192.23.

The continued depreciation of the Nepali rupee has been largely influenced by the weakening of the Indian rupee, which has fallen to a record low against the US dollar. Indian media reported that one US dollar was traded at around INR 89.94 in the Indian market on Wednesday. Since the Nepali rupee is pegged to the Indian rupee and the dollar rate in Nepal is determined on that basis, any weakening of the Indian currency directly affects the Nepali currency.

Analysts attribute the weakening of the Indian rupee to multiple factors, including the impact of a 50 percent US tariff on Indian goods, which has affected exports. A recent increase in capital gains tax through India’s budget has also reportedly reduced foreign investment and accelerated capital outflows.

A stronger dollar makes imports and foreign debt servicing more expensive for Nepal, as payments are largely made in US dollars. However, the rising dollar also increases remittance inflows, export earnings, and tourism income when converted into the local currency.