The value of USD 1 reached Rs 132.07 on the day.
On the day, Nepal Rastra Bank (NRB) fixed the buying rate for one US dollar at Rs 131.47 and the selling rate at Rs 132.07.
Since the last ten months, the value of the greenback is continuously rising. In the beginning of February, the value of USD was at Rs 119 since then it has gained Rs 13 shows NRB data.
As per the experts, war between Russia and Ukraine as well as interest rose by Federal Reserve are the main reason for the appreciation in the value of USD.
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 export. However, as the export volume of Nepal is nominal, it will not be able to get adequate maximum profit from this.
The appreciation of the dollar will also hit the development works and increase its cost 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.
