Nepali Rupee plunges to all-time low of $130.90 on Tuesday

KATHMANDU: The Nepali Rupee fell to an all-time low against the US dollar on Tuesday. The Nepali currency fell as low as $130.90 with a drop of 1.01, the NRB Open Market Exchange Rates shows. The Central Bank fixed the buying rate for one USD at Rs 130.30. It has been learnt that the plunge of the Nepali Rupee is an effect of the steady depreciation of the Indian Rupee. According to experts, the appreciation of the US Dollar may fuel inflationary pressure. Although a stronger dollar does not benefit the country, it shows higher remittance earnings in terms of Nepali Rupee. According to the central bank, the appreciation of the USD means a higher cost of imports, fuelling further inflation. However, it is also an opportunity for remittances, tourism and exports. The USD soared after the US Federal Reserve, the central bank of the US, increased the interest rate for the fourth time this year by 0.75% thrice and 0.50% once. READ ALSO: British pound plunges to new low as tax cuts spark concern