September 1: The Nepalese currency has been getting stronger against the US dollar. The dollar has been depreciating in recent days, resulting in a stronger Nepalese currency against the dollar.

According to Nepal Rastra Bank (NRB), the dollar has depreciated by around Rs 2 in the last six days alone. The buying price of one dollar was Rs 119.10 last Thursday, but it has come down by Rs 1.99 to Rs 117.11 this Wednesday.

The selling price of dollar was  Rs 117.52 and buying price was Rs 116.92 on Tuesday.

The Nepalese rupee has strengthened over the past two months. Executive Director of Nepal Rastra Bank Dr Prakash Kumar Shrestha said that the Nepalese currency has strengthened against the dollar in recent days. He said that the Indian currency has strengthened against the dollar while the Nepalse currency has also strengthened.

"For various reasons, the Indian currency has been strengthening against the dollar lately. As a result, the Nepalese currency has strengthened, but it is impossible to say what will happen next. The Indian currency market will determine the value," he said. 

The Nepalese rupee has got stronger with the rising value of the Indian rupee against the dollar. The exchange rate of the Nepalese rupee is pegged to the Indian rupee. Due to that, when the Indian rupee strengthens, the Nepali currency also strengthens, and the value of the dollar decreases. Similarly, when the Indian rupee weakens, the exchange rate of the Nepalese rupee declines automatically, and the value of the dollar rises. The dollar exchange rate was INR 90.70 on Tuesday due to the rise in the Indian stock market and the decline in the dollar against other currencies. Also, on Friday, Jeremy Powell, chairman of the US Federal Reserve, hinted at lower interest rates. Due to that, the Indian currency has strengthened.

On top of that, the Indian capital market has been on the rise lately. Exports from India are also increasing. As a result, the Indian currency has strengthened, eventually raising the value of the Nepalese currency.

Shrestha says that the dollar will become cheaper, and imports will also become cheaper. He also said that Nepal's foreign loans would be cheaper. "However, it will have a negative impact on remittance inflow," he added.