Currency
Nepali currency gained Rs 3.48 vis-à-vis the US dollar over the week, as the currency market recorded major upheavals, with Forex dealers revising the rupee´s value upward as much as three times a day. The dollar was valued at Rs 76.17 on Friday.
Nepal Rastra Bank, the country´s monetary authority, had fixed the exchange rate of a dollar at Rs 79.65 on Sunday, but domestic currency continued to gain throughout the week amid sharp gains made by the Indian currency, with which Nepali rupee is pegged. While the domestic currency gained more than two rupees against the dollar on Tuesday, it further strengthened on Thursday, when it was valued at Rs 76.45 per dollar.
Likewise, Nepali currency recorded a sharp Rs 3.33 gain against the euro and also strengthened by 79 paisa against the pound sterling. The euro was exchanged at Rs 104.99 on Friday, while the pound sterling was valued at Rs 120.29 on the day. Going by the open market exchange regime, the rate may vary with commercial banks.
Bullion
The bullion market spiraled downward as the price of gold recorded a drop of Rs 51 per gram over the week. It traded at Rs 23,665 per 10 grams on Friday. Gold dealers attributed the decline to an upward valuation of Nepali currency, as well as a downward revision of international gold prices.
According to Nepal Gold and Silver Dealers´ Association, gold was traded at Rs 24,175 per 10 grams on Sunday. However, subsequent to a sharp overnight gain by the Nepali currency, its price went down by more than Rs 1,000 over the next two days. Gold was traded at Rs 23,150 per 10 grams on Tuesday. The prices started to rise from Wednesday on account of the international price rally.
The price of silver, on the other hand, recorded a slip of Rs 1 per 10 grams over the week. Silver was traded at Rs 367 on Friday. As Nepal fulfills its bullion requirements through imports, any fluctuation in the price of gold directly impacts domestic rates.
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