Nepalese Rupee Hits Historic Low as Reserve Bank of India Fails to Increase Dollar Supply

As the Indian rupee (INR) reaches its weakest point in history, the Reserve Bank of India (RBI) has not managed to increase the supply of US dollars. Factors such as conflict in the mid-west region, rising oil prices, and higher US interest rates have contributed to the depreciation of the Indian rupee. This decline has also impacted the Nepalese rupee, causing its exchange rate against the dollar to fall. Kathmandu, 18th Baisakh.

The RBI typically attempts to stabilize the rupee’s value by increasing dollar supply; however, it has not expanded dollar availability under the current circumstances. The ongoing conflict in the mid-west and alternative international trade strategies have weakened the Indian rupee. Recently, BRICS countries, including India, have been preparing to develop an alternative currency to the dollar.

On Friday, not only the Indian rupee but also the Nepalese rupee weakened against the US dollar. The exchange rate system between Nepal and India remains stable, fixed at 160 Nepalese rupees for 100 Indian rupees. When the rupee weakens against the dollar, the Nepalese rupee naturally depreciates as well, even without direct internal causes. Currently, the exchange rate is 94.88 Indian rupees per US dollar, while the Nepalese rupee’s buying rate is 151.56 and selling rate is 152.16.

According to Gurupadsad Paudel, spokesperson for Nepal Rastra Bank, the exchange rate against the dollar is calculated based on changes in the Indian rupee, which affects the Nepalese exchange rate. He reported that in April 2026, India recorded an outflow of 110 billion rupees and noted, “The Indian rupee depreciated by 5.5 percent during April.” He explained that global political instability has increased investor confidence in the dollar, leading to the decline of the Indian rupee.