NPR & USD - Markets & outlook
Nepalese rupee - NPR:
December 22, 2025
Key Developments Affecting the Nepalese Rupee (NPR):
1. US Dollar Hits Record High Against NPR:
- In December 2024, the US Dollar reached an all-time high against the Nepalese Rupee, with the exchange rate at NPR 135.82 for selling and NPR 135.22 for buying. This surge is attributed to the weakening of the Indian Rupee, which is directly linked to the NPR at a fixed exchange rate. (sharesansar.com)
2. Rising Inflation Due to Currency Depreciation:
- The depreciation of the NPR has led to increased import costs, contributing to a rise in the cost of living. Nepal's inflation rate climbed to around 7.5% in 2024, making everyday items more expensive for consumers. (linkedin.com)
3. Monetary Policy Adjustments by Nepal Rastra Bank (NRB):
- In July 2025, the NRB reduced the bank rate from 6.5% to 6% and the policy rate from 5% to 4.5%, aiming to stimulate economic activity. (bestexchangerates.com)
4. Inclusion of Bangladeshi Taka and Sri Lankan Rupee in Convertible Currency List:
- The NRB added the Bangladeshi Taka and Sri Lankan Rupee to Nepal's official list of convertible foreign currencies, reflecting growing economic and labor ties with these countries. This move aims to facilitate smoother and more transparent foreign exchange operations. (english.nepalnews.com)
These developments have contributed to increased volatility in the NPR, affecting investor confidence and economic stability.
