US DOLLAR IS NOW TRADING BELOW NRs64!!!!!!!!!!!!!

Indian Rupee against US Dollar fell below Rs40 for first time in NINE YEARS!!!!!!!

My question is WHY NEPALESE RUPEE IS STILL TRADING AGAINST IC AT SAME 1.6 CONVERSION FOR TWO DECADES?

Why CANNOT WE GET OUR CURRENCY INDEPENDENT FROM INDIAN CURRENCY??????????

MYSTERY?

We can't change the peg especially since India is our major trading partner (not the other way around). We're too small an economy to change the free market prices in India. With a floating exhange rate, an uncontrollable inflation would persist as there is no way on earth that the NRP would be able to keep up with the INR in global demand for its reserves. Especailly in times of economic uncertainty and political turmoil, its good that the peg is still holding otherwise we could see mega infaltionary trends takeing place all over Nepal. BTW, am beginning to wonder how long will this peg hold as it just doesn't seem viable given India's double digit GDP growth percentage and an ever increasing outlook on the GBP/Per capita GDP.

Also, USD has nowhere else to go but lower especially since more rate cuts are forecasted in the near horizon.

Peg is good for Nepalese currency. I think india needs to loosen its moneytory policy a bit then Rs should appreciate little bit.
Just a related note, Some one should start addressing the issue of inflation in Nepal. The rate it is going rite now could devastate the already feeble economy.

I heard that by end of the 1st quarter next year, Indian rupees against US Dollar will fell lower 30. This means that Nepali rupees again dollar will be mid 50.

no doubt about that. india's economy is growing every day.

today exchange rate says 1 Canadian dollar = 1 US dollar

BEAUTIFUL...

If Nepali Rs. is not based on Indian Rs. then Nepal economy will crash in international market. 1 US $ will be like 200 Nepali Rs. So, we can imagine whether basing on Indian Rs is good or bad.

Let me share smthing!
Currencies, just like any other commodity that can be bought or sold, are subject to the laws of supply and demand. When more people want a particular currency, the cost of the currency in terms of other currencies will go up. When demand decreases or people do not want to hold a country's currency, the value will go down.

One factor that directly affects demand for a currency is international trade. For instance, if I buy a Japanese car in the US, I give dollars to my dealer, who gave dollars to his distributor, and so on. But before the profits are banked by the carmaker in Japan, they are converted into Yen. There is a surge of buying of Japanese cars this month, the result is going to be increased demand for Yen-which will in turn cause an appreciation in the Yen's value. An increase in international investment into Japan would have the same effect, since more money is being converted into Yen to purchase Japanese assets.