Despite weakening of rupee, gold price dropped in the domestic market by Rs 548 per tola (11.664 grams) as global investors´ wariness over looming US fiscal crisis, efforts to avoid which has made little progress, dragged its price down in the international market.[break]
Currency
Nepali rupee shed 25 paisa against a US dollar over the week. This caused import cost to go up, but raised receipts of exporters and remittance receivers. On Friday, a US dollar was exchanged at Rs 87.20.
Currency trading had opened this week on Sunday with Nepal Rastra Bank, the central monetary authority, fixing the exchange rate of a dollar at Rs 86.95. But as oil companies in India placed huge demand for dollar, Indian currency fell, causing rupee to shed 44 paisa against a dollar on Monday.
Though rupee gained 9 paisa, 15 paisa and 10 paisa, respectively, over the next three days, it again shed 15 paisa on Friday after the Indian currency slipped on the back of anticipation of dismal outlook of inflation data due Friday.
Likewise, rupee shed Rs 1.29 against a euro and fell by 96 paisa against a pound sterling over the week. A euro closed at Rs 113.95 on Friday, while a pound sterling was exchanged at Rs 140.60 when the market closed for the week on Friday.
Bullion
Gold became cheaper by Rs 470 per 10 grams (that is Rs 548 per tola) this week as its international price dipped amid little progress on talks to avoid US fiscal crisis. The yellow metal was traded at Rs 50,755 per 10 grams (that is Rs 59,200 per tola) on Friday.
Bullion trading had opened this week with gold priced at Rs 51,225 per 10 grams on Sunday. As global investors´ wariness to put their money on gold lowered its demand and price, gold price dipped overnight by Rs 40 and another Rs 175 per ten grams on Monday and Tuesday, respectively. Price further dropped by Rs 170 per 10 grams on Wednesday and another Rs 255 per ten grams on Thursday. However, compared to Thursday, gold became expensive by Rs 170 per ten grams on Friday when the market closed this week.
The price of silver also recorded a sharp drop of Rs 12.5 per ten grams over the week. On Friday, silver was traded at Rs 999 per 10 grams, according to Nepal Gold and Silver Dealers Association.
Related story
Nepali rupee weakens to a six-month low against US dollar
