On the day, the USD made a record with a sale price of Rs 135.37 and a buy price of Rs 134.77.
In recent days, the value of the Indian Rupee has weakened. As Nepalese currency is pegged with Indian Rupees, the Nepalese currency has also weakened compared to the USD.
Appreciation of the dollar will increase the value of remittances sent home by migrant workers and income from exports. However, as Nepal's export volume is nominal, it will not be able to profit adequately from this.
The appreciation of the dollar will also affect development works and increase their costs, as the country imports most of the machinery and other equipment from foreign countries.
Appreciation of the US dollar would also trigger inflation and deplete foreign currency reserves badly as Nepal’s import is very high compared to export. Devaluation of exchange rates will create an additional burden on the balance of payment.
