Gold, on the other hand, rose this week, skyrocketing to a new high of Rs 61,761 per tola (11.664 grams) on Friday as global investors switched to safer haven fearing that US central bank´s stimulus might spark inflation.[break]
Currency
Nepali rupee gained 2 paisa against a US dollar over the week. This nominally lowered the cost of import and receipts of remittance receivers as well as exporters. On Friday, a dollar was exchanged at Rs 89.03.
Nepal Rastra Bank (NRB), country´s monetary authority, had opened the trading Sunday with exchange rate of dollar set at Rs 89.05. But Indian government´s announcement to initiate fiscal reforms caused rupee to gain 18 paisa on Monday. Though rupee slid overnight by a paisa and further 8 paisa on Wednesday, it regained 37 paisa on Thursday. Rupee, however, shed 44 paisa on Friday as increased demand for the greenback by oil companies in India weakened its currency.
Contrary to gain against greenback, rupee shed Rs 2.22 against a euro and Rs 1.40 against a pound sterling over this week. A euro was exchanged at Rs 114.98 on Friday, while a pound sterling closed at Rs 143.49 this week.
Bullion
Gold became expensive by Rs 550 per 10 grams this week as its global demand rose amid investors turning wary over risks of US inflation, which is expected to rise following the Federal Reserve´s announcement of fresh stimulus package. Referring to such global scenario, dealers on Friday traded gold at Rs 52,950 per 10 grams -- a new high in the local market.
Bullion trading had opened this week with gold priced at Rs 52,400 per 10 grams on Sunday. Though the yellow metal became dearer by Rs 50 per 10 grams on Monday, it shed Rs 100 per ten grams on Tuesday and the price remained unchanged till Thursday.
However, on Friday, the price rose by a whopping Rs 600 per 10 grams as gold in the international market rallied to a six-month high of US$ 1,777 per troy ounce - following Fed´s announcement.
The price of silver also went up by Rs 22 per 10 grams over this week. On Friday, silver was traded at Rs 1,042 per 10 grams.
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