Keep monitoring the INR rate with USD folks... USD ups and downs has nothing to do with Nepalese economy. Allow me to explain how exchange rates are determined in Nepal.

The treasury department in Nepalese Banks determines the foreign currency exchange rates. Most of the banks use Active 8 or Telerate software to fix the exchange rate. This software basically gives the cross rate with INR. INR and NPR are pegged with fixed rate of 1.60 so it easy for the banks to convert the exchange rate multiplying by 1.60. The NPR converted exchange rates are sent to FEDAN (Federation of Dealers Association of Nepal) which compiles the rate from all commercial banks and development banks which are permitted to do forex transactions. FEDAN calculates the mean (average) and sends it to Nepal Rastra Bank and next day in daily newpapers it is published.