Nepali Rupee further falls to Rs.115.48 against Dollar; Speculations of falling to Rs.120 prevail

The US Dollar exchange rate against Nepali Rupee has reached a point of all time low with selling exchange rate standing at Rs.115.48 against one US dollar as posted by NRB.

This comes after the demand of US dollar went up in the international exchange market. The Nepali Rupee that is at its weakest against US dollar, is further expected to fall up to a point where Nepali Rupee reaches Rs.120 against one US dollar.

The effects of India’s move of spending US dollar to stock up petroleum products can be seen in the Nepali market as well. Due to fixed exchange rate of Rs.1.60 against Indian Rupee, fall in the value of Indian Rupee automatically results in fall of Nepali Rupee in the exchange market. Also, Nepal being an import dependent country, increase in the value of Dollar results in increased prices of most of the products in Nepal.

Due to this increase, only the remittance sector is benefitting. People who send money from abroad are getting more in value in terms of Nepali Rupee.

This has resulted in a costlier market for people in Nepal on the face of Dashin which is considered to be the most auspicious festival in Nepal, during which people spend hefty amount on consumer goods and various products.