KATHMANDU, July 10: Nepali currency weakened against the US dollar over the week, as Indian currency with which domestic rupee is pegged depreciated against the greenback. Despite currency depreciation, decline in the international price of gold caused the gold price to drop in the domestic market. [break]
Currency
Nepali currency recorded a drop of Rs 1.17 against a US dollar this week amid downturn of Indian currency against US dollar. A dollar was exchanged at Rs 78.30 on Friday.
Nepal Ratsra Bank (NRB), the monetary authority, had fixed exchange rate of dollar at Rs 77.13 on Sunday. Rupee gained 80 paisa overnight on Monday, but slipped the following days landing at Rs 77.93 per dollar on Wednesday and Rs 78.45 a dollar on Thursday. On Friday, however, it gained 15 paisa against a US dollar, compared to the day before.
Likewise, Nepali rupee depreciated by 98 paisa against a euro over the week. On Friday a euro was exchanged at Rs 109.14 in the domestic market. Rupee, however, gained 39 paisa against a pound sterling during the period. On Friday, 1 pound sterling was valued Rs 126.24, according to NRB. Going by the open market exchange regime, the rates fixed by the commercial banks may vary.
Bullion
Consumers witnessed the price of gold going cheaper by Rs 13 per gram over the week. The precious metal was traded at Rs 23,405 per 10 grams on Friday in the domestic market. Dealers attributed the drop to the decline in the international prices of gold.
According to Nepal Gold and Silver Dealers´ Association, gold was traded at Rs 23,535 per 10 grams on Sunday. Amid a drop in the international prices, domestic prices dipped to Rs 23,490 per 10 grams on Tuesday. Gold price rallied to Rs 23,750 on Wednesday, but fell down by Rs 345 per 10 grams over the next two days on Friday, when international price settled at US$ 914 per troy ounce.
The price of silver, on the other hand, remained unchanged at Rs 256 per 10 grams this week. As Nepal fulfills domestic bullion requirements through imports, any fluctuation in international prices directly impacts the domestic prices.