Despite the pressure it exerted on price of imported items, gold price dropped in the domestic market -- thanks to declining craze for the yellow metal in the international market. [break]
Currency
Nepali currency depreciated 88 paisa against a US dollar this week, as greenback strengthened against Indian currency with which Nepali rupee is pegged. A dollar was exchanged at Rs 73.90 on Friday.
Nepal Rastra Bank had fixed the exchange rate of a dollar at Rs 73.10 on Sunday. As dollar bounced back against Indian currency, rupee shed 54 paisa overnight on Monday, but recovered 25 paisa on Tuesday. However, rupee continued to shed value over the following days of the week, losing 41 paisa by Thursday and another 24 paisa overnight on Friday.
Likewise, Nepali currency tumbled against a pound sterling by about a rupee during the week. A pound sterling was exchanged at Rs 120.02 on Friday. However, rupee gained a whopping Rs 2 against a euro this week. On Friday, a euro was exchanged at Rs 104.20.
Bullion
Gold became cheaper by Rs 17 per gram in the domestic market this week, as sharp drop in international price of gold on the later days of the week negated the impact of weakening Nepali rupee on gold price. On Friday, gold was traded at Rs 26,965 per 10 grams in the country.
Nepal Gold and Silver Dealers´ Association, which sets domestic bullion price based on price movement in the New York Commodity Mercantile Exchange, had opened the market at Rs 27,135 per 10 grams on Sunday. The price rallied to Rs 27,220 per 10 grams on Tuesday and further jumped to Rs 27,265 on Wednesday. But the price soon spiraled down to Rs 27,180 on Thursday and further dropped by Rs 225 on Friday.
Silver price, on the other hand, dropped to Rs 458.50 per 10 grams in the domestic market this week.
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