KATHMANDU, May 19: The Nepali Rupee fell to a record-low against the US dollar with the Nepal Rastra Bank (NRB) fixing the rate of Rs 124.44 per dollar for Thursday.
In recent days, the price of USD has been escalating mainly due to a surge in US Treasury yields following an aggressive rate hike by the Federal Reserve. The Nepali currency which is pegged with the Indian Rupee has been affected with the falling graph of the Indian currency against the dollar.
Pound, Singapore Dollar and Australian Dollar strengthen
At a time when Nepal has been facing pressure on its foreign currency reserves, the depreciation of its domestic currency could further worsen the country’s net inflow amount. It could raise the market price significantly as the country is dependent on imported goods.
In addition, the costs of development projects are likely to escalate as the capital goods need to be imported for an expensive dollar. Similarly, the government could feel the heat of debt financing at the soaring price of the dollar.
