Currency
The Nepali currency weakened by 80 paisa vis-à-vis the US dollar over the week, as the Indian currency dipped against the greenback. A dollar was valued at Rs 76.60 on Friday.
Nepal Rastra Bank, the country´s monetary authority, had fixed the exchange rate of a dollar at Rs 75.80 on Sunday, but the domestic currency continued to weaken over the following days. Compared to Sunday, the domestic currency lost as much as Rs 1 per dollar on Wednesday, when a dollar was valued at Rs 76.80. It, however, made marginal gains over the next two days.
Likewise, the Nepali currency depreciated by 22 paisa against the euro and also weakened by Rs 1.59 against the pound sterling. A euro was valued at Rs 105.97 on Friday, while the pound sterling was valued at Rs 121.86. Going by the open market exchange regime, the rates may vary among the commercial banks.
Stock Market
The Nepal Stock Exchange (NEPSE) gained a whopping 30.55 points over the week, as the announcement by the new finance minister that the government would not intervene in the market helped to restore investors´ confidence. The market closed at 718.62 points on Thursday.
According to a NEPSE statement, 400,500 units of shares of 95 companies were traded over the week, and its turnover stood at Rs 365.50 million. The volume, however, was 13.12 percent lower than that recorded last week. The turnover of category A companies alone was valued at over Rs 278.4 million, which made up over 76 percent of the total turnover.
All the sub-groups, except for the financial group, had their indices bouncing back. The index of commercial banks shot up by over 45 points, while the indices of the hydropower and development banks went up by over 36 points and 29 points, respectively. The indices of the trading and others groups too recorded a double-digit growth. The index of the financial group, however, dropped by 9.76 points.
Bullion
The price of gold went up by Rs 30 per gram in the domestic market over the week and was traded at Rs 24,005 per 10 grams on Friday. Gold dealers attributed the rise to the upward revision of the international gold prices.
According to the Nepal Gold and Silver Dealers´ Association, gold was traded at Rs 23,705 per 10 grams on Sunday, but its price rose over the next trading days. Gold was traded at Rs 23,875 per 10 grams on Tuesday. It dropped by Rs 85 per 10 grams on Wednesday, but the prices soon rallied to Rs 23,875 on Thursday and Rs 24,005 per 10 grams on Friday.
The price of silver also rose up by Rs 7.50 per 10 grams over the week. Silver was traded at Rs 377 on Friday. Since Nepal fulfills its bullion requirements through imports, any fluctuation in the price of gold directly impacts domestic rates.
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