As the dollar continues to strengthen, the Nepali currency is the weakest ever, the exchange rate of one US dollar is 137.16 rupees (selling rate).
Compared to the US dollar, the Nepalese rupee has reached its weakest point so far. As the dollar continues to strengthen, the Nepalese currency (Neru) has reached its weakest point so far. Nepal Rastra Bank has fixed the exchange rate of one US dollar at Rs 137.16 (selling) for Saturday and Sunday.
This is the highest ever. Last Friday, the exchange rate of one US dollar was Rs 136.73.
The Nepali rupee has been continuously weakening against the US dollar every day for the past week. That is why the exchange rate of the US dollar is making new records every day. According to the Rashtra Bank, the Nepalese rupee has depreciated by 1.02 percent against the US dollar at the end of October. Last year same The Nepali Rupee depreciated by 1.18 percent during the
period. At the end of last November, the purchase exchange rate of one US dollar reached 134.74 rupees. At the end of last June, the exchange rate was 133.36 rupees.
Whether the value of the US dollar increases or decreases, it does not directly affect the Nepali rupee. But the fluctuations in the value of the dollar directly affect the Indian currency (Bharu) and the Nepali currency becomes stronger or weaker due to its impact. There is a fixed exchange rate between Nehru and Bharu. A large part of Nepal's total foreign trade is dependent on India. Hence, when the exchange rate of Bharu falls, Nehru is also affected.
As of 8 pm on Saturday, the exchange rate of one US dollar reached 85.39 baht. Baru has also been depreciating against the dollar for the past few weeks. However, last Wednesday such exchange rate was 85.41. In recent months, the demand for dollars in the world market has increased, so the price has also increased. Experts say that the American dollar is constantly rising after the American Republican leader Donald Trump became the president.
Trump mentioned in his election manifesto that the US dollar will be developed again as a reserve currency. Now, after becoming the president, the investors' attraction to the dollar has increased based on the assumption that the issues mentioned in the manifesto will be implemented.
After assuming the office of president next January, depending on what kind of policy Trump takes on the dollar, its price will definitely increase or decrease. But since Trump's decisions regarding the economy and nationalism will be aggressive, experts say that the price of the US dollar will rise even more after the implementation of the decision to develop the US dollar as a reserve currency mentioned in the manifesto.
Nepal also benefits when the dollar becomes stronger. In the current situation, the most benefit lies in remittance inflows. When the dollar is strong, on the one hand, the remittance inflow (amount of money coming into the country) increases, and on the other hand, the number of remittance senders also increases.
Nepalis abroad send large amounts of remittances because they will benefit when the dollar increases. A strong dollar also has a positive impact on foreign direct investment (FDI). The improvement in remittances and FDI will go a long way in keeping the country's balance of payments in surplus. Nepal can also benefit from the strengthening of the dollar by making good improvements in tourism and exports.
When the dollar appreciates, the biggest loss is in payments for imports of goods and services. However, since the import has not increased much in recent months, the liability to pay for it has not increased much. A lot of money has to be spent on foreign investment return, foreign investment dividend distribution etc. That is a loss for Nepal.
Similarly, when the value of the dollar increases, a lot of money is spent on studying abroad, traveling, and health treatment, so this is also a disadvantage for Nepalis.
