NPR stands at Rs.109.94 against one USD; what is the reason behind the continuous fall?
The value of US Dollar against NPR, that almost reached Rs.120 five months ago, currently stands at Rs.109.94 as of 19th March 2019. The USD was highest on 14th October 2018, when one USD was valued at NPR 119.33. Since then, the value of USD against NPR has fallen by Rs.9.39.
The fall in the value of USD will have an impact on the remittance received from abroad. The remittance received in foreign currency will be less valuable in local currency.
It will also impact the cost of imports. The cost of imports will fall with the fall in the value of USD. This is a major positive aspect for an import dominated country like Nepal.
The fall in the value of USD can be accredited to the Federal Reserve’s decision to keep the interest rate unchanged for the time being.
