NPR & INR - Markets & outlook
Nepalese rupee - NPR:
November 11, 2025
Key Developments Affecting the Nepalese Rupee (NPR):
1. Cooperative Scandals and Financial Instability (September–October 2024):
- High-profile cases of financial misconduct and embezzlement in cooperative savings and credit institutions have led to significant public unrest and a loss of confidence in the financial sector. (en.wikipedia.org)
2. Monetary Policy Adjustments (August 2025):
- The Nepal Rastra Bank (NRB) introduced measures to support economic recovery, including increasing loan limits for private residential housing and reducing the policy rate from 5% to 4.5%. (bestexchangerates.com)
3. Pro-Monarchy Protests and Political Unrest (February–March 2025):
- Intensified demonstrations in Kathmandu advocating for the restoration of the Hindu monarchy led to a two-month prohibitory order in key areas of the capital. (bestexchangerates.com)
4. Stock Market Decline (March 2025):
- The stock market declined for the second consecutive week, closing at 2,669.31 points, down by 67.17 points from the previous week, resulting in a market capitalization fall to NPR 4.432 trillion. (bestexchangerates.com)
These events have contributed to increased volatility in the NPR, affecting investor confidence and economic stability.
Indian rupee - INR:
November 11, 2025
Key Factors Affecting the Indian Rupee (INR):
1. Record Low Against the US Dollar: On September 23, 2025, the INR reached a historic low of 88.62 against the US dollar, influenced by increased US H-1B visa fees and reduced foreign equity inflows. (reuters.com)
2. Reserve Bank of India's Intervention: In October 2025, the RBI expanded its short dollar forward positions by $6 billion, signaling active measures to stabilize the weakening rupee. (reuters.com)
3. Persistent Importer Hedging: Throughout October 2025, strong importer demand for dollars, coupled with concerns over US tariffs and immigration policies, exerted continuous pressure on the rupee. (reuters.com)
4. Weak Manufacturing Exports and Policy Rate Differential: A report from early November 2025 highlighted that slowing foreign direct investment, weak manufacturing export growth, and a narrowing policy rate differential with the US are likely to pressure the INR. (economictimes.indiatimes.com)
Recent Developments Impacting the Indian Rupee:
- Indian rupee slides to all-time low, US visa fee hike compounds pressure, Published on Monday, September 22
- Indian central bank's forward book expands after six months as it mounts rupee defense, Published on Friday, October 31
- Rupee boxed in by persistent importer hedging, central bank intervention, Published on Monday, October 06
