KATHMANDU: The value of the United States Dollar (USD) has made a new contemporary record in Nepal with one USD trading for Nepali Rs 126.05 on Thursday.
The Central Bank, Nepal Rastra Bank (NRB), fixed the buying rate for one USD at Rs 126.05 and the selling rate at Rs 126.65 today.
Likewise, the value of USD to Nepali rupees was 125.74 (Buy) and 126.34 (Sell) on Wednesday.
The USD has been gaining strength against Nepali rupees of late as the latter continues to fall.
The strengthening of USD is attributed to the prolonging confrontation between Russia and Ukraine.
The war between Russia and Ukraine has devalued the Indian rupee, against which the Nepali rupees is pegged. As the Indian rupee fell, so did the Nepali rupee.
When the dollar rises in value, only the tourism industry, exporters, and remittance sectors benefit.
Although Nepal has a competitive advantage in remittances and exports, the cost of imported items appears to be high due to significant imports.
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