Thanks to rupee´s gain, gold prices also dipped, although nominally, in the domestic market over the week.[break]
Currency
Nepali rupee gained Rs 2.01 against US dollar over this week, brining huge respite to the importers who were reeling badly under currency volatility and fast erosion of rupee´s worth. It, however, lowered the receipts of remittance receivers as well as exporters. On Friday, dollar was exchanged at Rs 88.34.
Nepal Rastra Bank (NRB), country´s monetary authority, had opened the trading Sunday with exchange rate of dollar set at Rs 90.88. Rupee fast bounced back over the next four days, as Indian currency strengthened riding on the Indian government´s reforms commitments that bolstered the confidence of foreign investors.
Rupee gained a whopping Rs 1.05 overnight against dollar on Monday and further strengthened overnight by 11 paisa on Tuesday, Rs 1.24 on Wednesday and another 65 paisa on Thursday. Rupee, however, lost the winning streak and shed Rs 1.04 against a dollar on Friday after Indian oil firm´s demand for dollars dragged down the value of Indian currency vis-à-vis US dollar.
Rupee also gained Rs 3.33 against euro and Rs 3.90 against pound sterling over this week. A euro was exchanged at Rs 110.45, while a pound sterling was valued Rs 137.61 on Friday.
Bullion
Although gold price rallied in the international prices, consumers in Nepal enjoyed a net drop in its price by Rs 40 per ten grams over this week as rupee´s sharp gain lowered the cost of its import. On Friday, gold was traded at Rs 48,570 per ten grams in the domestic market.
Bullion trading had opened this week with gold priced at Rs 48,610 per ten grams on Sunday. As whopping gain by Nepali rupee lowered import cost, gold price dropped overnight by Rs 85 per ten grams on Monday, Rs 130 on Tuesday and further dipped by Rs 125 per ten grams on Wednesday.
However, the price rallied and gold became expensive by Rs 210 per ten grams on Thursday after the rate of gold´s international price rise outpaced rupee´s gain. Gold price rose by Rs 90 per ten grams on Friday as well.
The price of silver, on the other hand, went up by Rs 4.50 per ten grams this week. On Friday, silver was trade at Rs 879 per ten grams.
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