Money & Finance
The US dollar has peaked at its all-time high against the Nepali rupee. As per the Nepal Rastra Bank's foreign exchange rates on Thursday, the buying rate of one US dollar is Rs132.54, while the selling rate is Rs133.14.
The buying rate of a unit of the greenback was Rs131.48 and the selling rate Rs132.8 on Wednesday.
Similarly, the Central Bank has fixed the buying rate of one Euro at Rs129.65 and the selling rate at Rs130.24 for today.
The Nepali rupee has depreciated with the increase in the value of the US dollar in the international market. The Nepali rupee is pegged with the Indian rupee at a fixed exchange rate. The Nepali currency is impacted as the Indian currency's value decreases when the US dollar appreciates.
Although the increase in the US dollar's value will positively impact the income from remittances, tourism revenue, and export trade, it will negatively impact the overall economy, according to economists.
According to them, the appreciating US dollar means the trade deficit would go up further since the import is greater than the export. This will also hurt the balance of payment and foreign currency reserves.
Likewise, the price of imported goods, fuel, and other commodities, as well as the principal and interest amount, would rise with the increase in the US dollar value. - RSS