Currency
Nepali currency strengthened by Rs 1.03 against a US dollar over the week, rendering imports cheaper, but slashing exports income and remittances. A dollar was exchanged at Rs 74.17 on Friday.
Nepal Rastra Bank, country´s monetary authority, had fixed the exchange rate of a dollar at Rs 75.20 on Sunday. On the back of dollar slipping against the Indian currency, with which Nepali rupee is pegged, Nepali currency recorded a consistent gains over this week. On Tuesday, rupee gained 59 paisa and on Thursday strengthened by further 21 paisa. Compared to Thursday, rupee further gained 23 paisa against a dollar when the market closed on Friday.
Rupee also gained 35 paisa against euro over this week, but slipped against pound sterling by Rs 1.25. On Friday, a euro was exchanged at Rs 112.12, while a pound sterling was exchanged at Rs 123.88. Going by the open market exchange regime, the rate varied marginally among the commercial banks.
Bullion
Despite marginal slump in the initial trading days, gold prices rallied to new highs this week, but it recorded a substantial drop overnight Friday. The yellow metal was traded at Rs 28,980 per 10 grams on Friday and dealers, who are catering to investors rather than general consumers, attributed the rise to weakening of dollar against major rival currencies, which has caused global prices of gold to soar.
Nepal Gold and Silver Dealers Association, which sets domestic prices of gold based on the price movement at New York COMEX House, had opened the market at Rs 28,680 per 10 grams on Sunday. With international prices escalating, gold price jumped Rs 85 per 10 grams on Monday, but slumped by more than Rs 200 on Tuesday. In the wake of global prices rally, domestic prices of gold soared by more than Rs 500 per 10 grams on Wednesday and further about Rs 500 on Thursday. However, the precious metal lost its shine and dropped by almost Rs 600 per 10 grams overnight on Friday.
The price of silver also soared to Rs 468 per 10 grams on Friday from Rs 463 of Sunday in the domestic market. As Nepal fulfills domestic bullion requirements through imports, any fluctuation in international prices directly impacts the domestic prices.
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