KATHMANDU, Oct 8: The Nepali Rupee fell to a historic low against the US dollar with Nepal Rastra Bank (NRB) fixing the exchange rate at Rs 132.02 per dollar for Saturday.
The US dollar has been setting a new high record of exchange rate mainly in the past two weeks. The Nepali currency has been weak against the USD after the Indian currency (INR), which it is pegged to, fell to a record low on Friday. The INR dropped to 82.33 per dollar, down 0.41 percent on the day, reports Economic Times, an Indian media.
Nepali rupee plunges to a historic low against US dollar; excha...
The USD has been stronger recently after the US Federal Reserve hiked its policy rate citing too-high inflation persisting in the US economy. Since the Nepali currency is pegged to the Indian currency, the weakening of the Indian currency against the dollar has also led to the depreciation of the Nepali currency.
The plunge in the value of the Nepali currency against the US dollar could help increase remittance inflow in the country. However, it increases the market price of goods as the country imports most of the raw materials including the capital goods necessary to produce finished goods.
