Currency
Nepali currency weakened by 26 paisa against a US dollar over the week making imports expensive but raising earning for exporters and remittance receivers. A dollar was exchanged at Rs 75.73 on Friday.
Nepal Rastra Bank, country´s monetary authority, had fixed the exchange rate of a dollar at Rs 75.47 on Sunday. With dollar weakening against the Indian currency with which Nepali rupee is pegged, on Monday and Tuesday, Nepali rupee had gained 2 paisa against a dollar in the domestic market. But it spiraled down on Wednesday and a dollar was exchanged at Rs 75.77 on the day. Rupee gained marginally on Thursday, but again tumbled on Friday, settling at Rs 75.73 per dollar.
Likewise, rupee also weakened against a euro by 38 paisa and a pound sterling by 3 paisa this week. On Friday, a euro was exchanged at Rs 112.28, while a pound sterling was exchanged at Rs 124.93. Going by the open market exchange regime, the rate varied marginally among the commercial banks.
Bullion
Gold prices recorded a dramatic rise and touched new highs in the domestic market over the week. The yellow metal became expensive by Rs 103 per gram during the period and traded at Rs 26,665 per 10 grams on Friday. Dealers attributed the rise to soaring gold prices in the international market and also the depreciation of Nepali currency against US dollar.
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 escalated, gold became dearer, plummeting demand over the following days of the week. On Tuesday, gold became expensive by Rs 345 per 10 grams, and the prices further jumped by Rs 520 per 10 grams on Wednesday and Rs 165 on Friday.
The price of silver also jumped to Rs 439 per 10 grams on Friday. As Nepal fulfills domestic bullion requirement through imports, any fluctuation in international prices directly impacts the domestic prices.
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