Currency
Nepali currency weakened by 73 paisa against US dollar this week, as dollar gained against the Indian currency with which domestic currency is pegged. A dollar was exchanged at Rs 78.03 on Friday.
Nepal Ratsra Bank (NRB), the monetary authority, had fixed exchange rate of dollar at Rs 77.30 on Sunday. However, after recording a marginal appreciation on Monday, rupee continued to weaken against greenback over the following days. A dollar was exchanged at Rs 77.92 on Tuesday, Rs 78.2 on Wednesday and Rs 78.84 on Thursday.
Likewise, Nepali rupee weakened by Rs 1.40 against a euro and by Rs 1.59 against a pound sterling. On Friday, 1 euro was exchanged at Rs 109.02, whereas 1 pound sterling was valued Rs 128.02, according to NRB. Going by the open market exchange regime, the rate may vary with the commercial banks.
Bullion
Gold price dipped by Rs 38.50 per gram over this week and was traded at Rs 24,005 per 10 grams in the domestic market. Dealers attributed the drop to the rise in international prices of gold also the depreciation of Nepali currency.
According to Nepal Gold and Silver Dealers´ Association, gold was traded at Rs 23,620 per 10 grams on Sunday. However, as the international prices inched up from US$ 934 per troy ounce over the following days, domestic prices rose to Rs 23,705 per 10 grams on Monday. It touched Rs 23,835 on Thursday after receding to Rs 23,580 on Tuesday and Wednesday. Compared to Thursday, gold gained Rs 170 per 10 grams overnight on Friday, when international price settled at US$ 942 per troy ounce.
Likewise, the price of gold inched up marginally and closed at Rs 375.50 per 10 grams on Friday. As Nepal fulfills domestic bullion requirements through imports, any fluctuation in international prices directly impacts the domestic prices.
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