The gold price also came down by Rs 606 per tola (11.664 grams) in the local market, thanks to strengthening of rupee and rise in crude oil prices, which attracted global investors.[break]
Currency
Nepali rupee gained 62 paisa against a US dollar over the week. This made imports cheaper, but also lowered receipts for remittance receivers and exporters. On Friday, a dollar was exchanged at Rs 85.46 - the highest since May 3.
Nepal Rastra Bank (NRB), country´s monetary authority, had opened the trading Sunday with exchange rate of dollar set at Rs 86.08. As Indian government stood firm in its reforms commitment and stuck with its fiscal borrowing plan, Indian currency rallied, causing rupee to gain 26 paisa on Monday and another 17 paisa on Tuesday. Though rupee slid by 19 paisa on Wednesday, it rebounded, gaining 3 paisa on Thursday and further 35 paisa on Friday.
Rupee also gained Rs 1.81 against a euro and Rs 1.49 against a pound sterling over the week. A euro was exchanged at Rs 110 on Friday, while a pound sterling closed at Rs 138.41 this week.
Bullion
Gold became cheaper by Rs 520 per 10 grams (that is Rs 606 per tola) this week as strengthening of rupee and drop in its global demand lowered cost of its import. The yellow metal was traded at Rs 51,350 per 10 grams on Friday.
Bullion trading had opened this week with gold priced at Rs 51,870 per 10 grams on Sunday. But prices continued to suffer sharp upheavals due to frequent changes in global currency market and oil price rally.
For instance, the price of yellow metal slid by Rs 600 per 10 grams overnight on Monday as Spain´s announcement of crisis budget enticed global investors to switch to euro from the safe haven. However, the price rose by Rs 340 per 10 grams on Tuesday. It again slipped by Rs 425 per 10 grams on Thursday as crude prices rallied. Gold again gained Rs 165 per 10 grams on Friday when the market closed this week.
The price of silver also dropped by Rs 13 per 10 grams over the week. On Friday, silver was traded at Rs 1,016 per 10 grams.
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