Despite the gain, which made imports cheaper, the prices of gold in the domestic markets went up -- thanks to rise in the prices of yellow metal in the international bullion market. [break]
Currency
Nepali currency gained 36 paisa against a US dollar this week. This rendered imports cheaper, but lowered income of exporters as well as remittance receivers. On Friday, a dollar was exchanged at Rs 74.19.
Nepal Rastra Bank, country´s monetary authority, has set the exchange rate of US dollar at Rs 74.55 when the market opened Sunday this week. The exchange rate remained unchanged on Monday, but as dollar shed its value against Indian currency, Nepali rupee gained 31 paisa on Tuesday and further 4 paisa on Wednesday.
Although dollar held firm its value on Thursday, rupee again gained a paisa on Friday when the market closed.
Nepali rupee gained 23 paisa against a euro, but shed a whopping Rs 1.78 against a pound sterling this week. On Friday, a euro was exchanged at Rs 97.37, while a pound sterling was exchanged at Rs 117.48.
Bullion
Gold became dearer by Rs 290 per 10 grams in the local market this week. Dealers who traded yellow metal at Rs 30,000 per 10 grams on Friday attributed the rise in its prices to jump in international demand and prices of the precious metal.
Nepal Gold and Silver Dealers´ Association, which sets prices of the yellow metal in the market, had opened the market with gold priced Rs 29,710 per 10 grams on Sunday.
As international price of yellow metal remained stable, domestic gold price remained unchanged on Monday. However, gold became cheaper by Rs 90 per 10 grams on Tuesday -- thanks to the devaluation of US dollar.
With the rise in international gold price, yellow metal became dearer by Rs 280 per 10 grams on Wednesday. On Thursday, it jumped further Rs 100 per 10 grams and the market closed at the same rate this week.
The price of silver too increased in the local market over this week. Silver was traded at Rs 484 per 10 grams on Friday.
As Nepal is totally dependent on international market for its domestic bullion demand, any fluctuation in the global market is directly reflected in the domestic market.
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