Nepali Rupee Hits An All-time Low Against USD, Benefits & Drawbacks of Strong Dollar

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nepali rupees
The Ratnapark-Bhadrakali road section has become congested once again after many fuel tankers entered through the Nepal-India border and the supply of fuel eased, in Kathmandu, on Monday. Photo: THT
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The Nepali rupee plunged to an all-time low of Rs 126.34 against the dollar on Wednesday.

According to reports, the constant depreciation of the Indian rupee, to which the Nepali rupee is connected, is to blame for the decline in the Nepali currency. The Indian currency is also at its all-time low against the USD. The demand for US dolor is very high in the market.

A strong US dollar offers both benefits and drawbacks. While some people gain from it, others suffer.

Economists believe that the devaluation of the national currency could put pressure on the balance of payments, particularly at a time when the nation is having difficulty keeping it.

Due to the nation’s heavy reliance on imports and very low level of domestic output, the depreciation of the domestic currency is likely to increase the rate of inflation.

The purchase of petroleum items, on which Nepalis completely rely, will be the area of most influence. It will also have an effect on the skyrocketing price of chemical fertilizer.

However, the remittance senders may gain from the US dollar’s increase. Remittance earnings, which had decreased until the last nine months of the fiscal year when compared to the same period last year, increased in terms of Nepali currency as a result of the strengthening of the US dollar.

Tourists can now purchase more Nepali money as the US dollar gains strength. With a stronger dollar, foreign tourists will discover lower pricing for goods and services in Nepal.

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Jenish Shrestha
Truth is important to us at any cost.

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