Nepali currency continues to strengthen against US dollar

Nepali currency--Rupee is continuing to strengthen against the US dollar with Nepal Rastra Bank (NRB) fixing the exchange rate at Rs 86.71 against a US dollar for Tuesday, which is a four-month high.

With this new rate, Nepali consumers may exchange the currency in a comparatively lower price specially sent from the third countries during the festive season.

The dollar was traded at Rs 86.39 in May and dollar has weakened over the last three days after hovering around at Rs 88-90 earlier.

The sustained strengthening of the domestic currency against the dollar would lead to reduce the price of imported goods as well.

The weakening dollar has seen a sudden rise in the opening of letter of credit (LC) for the imports of goods such as garments and electronics, whose demands pick up during the Dashain and Tihar festivals.

The strengthening of Nepali currency will also help Nepali industries get raw materials at cheaper rate than before, a NRB official said.

He also claimed that the strengthening of domestic currency will affect exports, making Nepali goods more expensive in the foreign markets.

The value of per US dollar had reached the highest level at Rs 91.88 on June 23 and 24 and remained below Rs 90.30 in the following days. nepalnews.com