US Dollar Hits New Record in Nepali Market

The value of the US dollar has once again reached a new record high in the Nepali market. Nepal Rastra Bank has fixed the buying rate at Rs. 140.93 and the selling rate at Rs. 141.53 for Sunday, the highest level so far.

Earlier, on Bhadra 14, the buying rate had reached Rs. 140.82 and the selling rate Rs. 141.42, setting a record then. Within a week, the dollar has now touched a fresh high. A rising dollar essentially means the Nepali rupee is weakening.

Nepal’s currency is pegged to the Indian rupee, so fluctuations in India directly impact Nepal. Recently, US President Donald Trump imposed a 50% tariff on goods imported from India, starting August 27. This created uncertainty in India’s trade with the US, leading to a withdrawal of foreign investments and higher demand for dollars in India. As a result, the dollar has appreciated in Nepal as well, since Nepal determines its exchange rate based on India’s evening rates.

Economists say the rising dollar brings both advantages and disadvantages for Nepal. On the positive side, remittance inflows, foreign tourism income, and export earnings will increase, as they are received in dollars. However, imports, foreign debt repayments, and other external payments will become more expensive. With Nepal importing goods worth over Rs. 1.5 trillion annually, a stronger dollar will raise import costs and likely fuel inflation in the domestic market.