Currency
Nepali currency weakened by a whopping Rs 1.53 against US dollar over this week, rendering imports expensive but raising income earning for exporters and remittance receivers. A dollar was exchanged for Rs 76.13 on Friday.
Nepal Rastra Bank had fixed the exchange rate of a dollar at Rs 74.60 on Sunday. But as dollar maintained its gain against the Indian currency with which Nepali rupee is pegged, rupee went through a consistent decline over the following days of the week. Compared to Sunday, rupee lost about 85 paisa against the greenback, when a dollar was exchanged for Rs 75.45. On Friday it further weakened by 68 paisa, compared to Wednesday.
Likewise, rupee also weakened against a euro by 25 paisa and a pound sterling by 86 paisa this week. On Friday, a euro was exchanged for Rs 112.19, while a pound sterling was exchanged for Rs 125.01. Going by the open market exchange regime, the rate varied marginally among the commercial banks.
Bullion
No change was recorded in the price of gold in the domestic market this week. Although the international prices of the yellow metal dropped during the week, dealers that traded gold at Rs 25,635 per 10 grams on Friday attributed this no change to the weakening of Nepali rupee.
Nepal Gold and Silver Dealers Association, which sets domestic prices of gold based on the price movement at New York COMEX House, had opened the market at Rs 25,635 per 10 grams on Sunday. As the international prices dropped, gold became cheaper by Rs 85 per 10 grams on Tuesday. However, as rupee started to tumble sharply, gold price again jumped to Rs 25,590 on Wednesday and Rs 25,635 on Thursday.
The price of silver, however, dropped this week and was traded at Rs 424.50 per 10 grams on Friday. As Nepal fulfills domestic bullion requirements through imports, any fluctuation in international prices directly impacts the domestic prices.
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