The US dollar, which reached a record high in the Nepalese forex market on Tuesday, has slightly declined in value today. According to the latest exchange rates published by the Nepal Rastra Bank, the greenback has become cheaper compared to its peak price yesterday.
US Dollar Loses Value After Hitting Record High
On Tuesday, the US dollar soared to its highest-ever price in Nepal, with a buying rate of NPR 139.20 and a selling rate of NPR 139.80. However, as of Wednesday, the exchange rate has fallen slightly. The new rates set by the central bank show that the buying rate for one US dollar stands at NPR 139.03, while the selling rate is NPR 139.62. While the drop is not substantial, it signals a slight relief for importers and those dealing in foreign currencies.
Fluctuations in Other Major Currencies
Apart from the US dollar, other global currencies have also seen shifts in their exchange rates. The Kuwaiti and Bahraini dinars, which are among the strongest currencies in the world, have also declined in value against the Nepalese rupee. However, the euro, the British pound, and the Australian dollar have all gained value, making them more expensive for Nepalese consumers and businesses.
- Euro: The buying rate for one euro today is NPR 143.52, while the selling rate is NPR 144.14. This marks an increase from Tuesday’s rate of NPR 142.52 (buying) and NPR 143.13 (selling).
- British Pound (GBP): The pound has strengthened, with today’s buying rate at NPR 172.60 and the selling rate at NPR 173.35. Yesterday, it stood at NPR 171.26 (buying) and NPR 172.00 (selling).
- Australian Dollar (AUD): The Australian dollar also saw a rise, with the buying rate at NPR 86.32 and the selling rate at NPR 86.70, up from NPR 85.45 (buying) and NPR 85.82 (selling) yesterday.
- Kuwaiti Dinar (KWD): The Kuwaiti dinar weakened slightly, with today’s buying rate at NPR 450.04 and the selling rate at NPR 451.98, compared to NPR 450.46 (buying) and NPR 452.40 (selling) on Tuesday.
- Bahraini Dinar (BHD): The Bahraini dinar also saw a slight decrease, with the buying rate at NPR 368.74 and the selling rate at NPR 370.34. Yesterday’s rates were NPR 369.22 (buying) and NPR 370.71 (selling).
What Is Causing the USD Fluctuation?
The movement of the US dollar is influenced by multiple factors, including global economic conditions, interest rate policies set by the US Federal Reserve, and the demand for the dollar in the international market. The recent dip in the dollar’s value may be attributed to shifting investor sentiment, as well as currency supply and demand dynamics in Nepal.
Additionally, Nepal’s remittance inflows, trade deficits, and foreign exchange reserves also play a significant role in determining the exchange rate. As the country heavily relies on imports, any fluctuation in foreign currency values directly impacts the cost of goods and services.
Impact on Businesses and Consumers
A slight drop in the US dollar exchange rate could offer some relief to importers who rely on foreign transactions to procure goods. Lower exchange rates reduce the cost of importing fuel, electronics, and essential commodities, benefiting businesses and consumers alike. However, for those earning in dollars, such as Nepali workers abroad sending remittances, a weaker dollar means reduced value when converted to Nepali rupees.
Forex Market Outlook and Future Predictions
The forex market remains volatile, with currencies fluctuating daily based on economic trends and global events. Analysts suggest that the Nepalese rupee’s performance against the dollar will depend on factors such as government policies, inflation control measures, and international trade relations.
For real-time updates on foreign exchange rates and economic news, visit Nepal Monitor, your trusted source for business and finance news.
