Nepalese households and businesses, the cost of living just got a little heavier. The Nepalese rupee (NPR) has plunged to an all-time low against the US dollar (USD), trading at around NPR 142.21 per USD, sparking concerns across the economy.

Historically, the NPR has been pegged to the Indian rupee, which itself has fluctuated against the dollar. In the early 2000s, one USD was worth around NPR 74–75, gradually rising to NPR 120–121 by 2020. The recent surge marks the steepest depreciation in decades.

Experts attribute the decline to a combination of global and domestic pressures. The strengthening of the US dollar worldwide, along with the Indian rupee’s depreciation, has directly impacted the Nepali currency. Locally, rising demand for dollars. Driven by gold imports, overseas payments, and visa fees has added further pressure.

The weakening rupee affects Nepal in multiple ways. Import costs are increasing, leading to higher prices for essential goods, fuel, and machinery. Businesses and households feel the impact, while entities with foreign-denominated debt face higher repayment costs in NPR.

The Nepal Rastra Bank (NRB) is closely monitoring the situation and may intervene if necessary. Economists warn that the rupee may continue to face downward pressure in the near term, underscoring the need for economic diversification and reduced import reliance. As the Nepali rupee hits this historic low, citizens and businesses alike are bracing for the effects of a weaker local currency.