Rupee´s gain along with drop in global demand for gold caused the price of yellow metal to drop in the local market, bringing some relief to the buyers amid festive season.[break]
Currency
Nepali rupee gained 58 paisa against a US dollar over the week. This lowered the cost of import, bringing some respite to consumers, but also dragged down receipts of remittance receivers as well as exporters. On Friday, a dollar was exchanged at Rs 87.25.
Nepal Rastra Bank (NRB), country´s monetary authority, had opened the trading Sunday with exchange rate of dollar set at Rs 87.83. With Indian government standing firm in its reforms commitment to welcome foreign investors and slash fiscal deficit, which rallied Indian currency, rupee also gained 64 paisa overnight on Monday and strengthened by further 48 paisa on Tuesday.
Though rupee shed 12 paisa on Wednesday, it regained 8 paisa on Thursday. It, however, fell against a dollar by 50 paisa on Friday when the market closed this week.
Rupee also gained Rs 1.55 against a euro and 95 paisa against a pound sterling over this week. A euro was exchanged at Rs 112.92 on Friday, while a pound sterling closed at Rs 141.22.
Bullion
Gold became cheaper by Rs 250 per 10 grams this week as its international demand slid with the announcement of stimulus package by the US government. The yellow metal was traded at Rs 52,300 per 10 grams on Friday.
Bullion trading had opened this week with gold priced at Rs 52,550 per 10 grams on Sunday. The yellow metal slid by Rs 240 per 10 grams on Monday and further dipped by Rs 210 per 10 grams on Tuesday as international investors switched away from the safe haven in the wake of US Federal Reserve´s monetary stimulus.
But the price rose by Rs 300 per 10 grams on Wednesday when news of weak manufacturing outlook of the US turned global investors wary. Though the global gold price underwent nominal upheavals over the next days, Nepal Gold and Silver Dealers Association that sets price of yellow metal in Nepal did not effect any changes in local prices on Thursday and Friday.
The price of silver also dropped by Rs 5 per 10 grams over the week. On Friday, silver was traded at Rs 1,037 per 10 grams.
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