Gold, however, became cheaper in the local market as demand for the yellow metal dropped in the international market on the back of strong Euro and declining oil price. [break]
Currency
Nepali currency underwent a devaluation of 35 paisa against a US dollar, rendering imports expensive but raising income for exporters as well as remittance receivers. On Friday, a dollar was exchanged at Rs 75.30.
A US dollar was sold at Rs 74.95 when the market opened this week on Sunday. As increasing demand for greenback amid declining international prices slightly weakened Indian Currency, Nepali rupee slipped 15 paisa on Monday.
On Tuesday, however, rupee inched marginally up by 4 paisa only to lose 9 paisa on Wednesday. On Thursday, rupee again shed 55 paisa vis-à-vis a US dollar. But it gained 40 paisa when the market closed on Friday.
Similarly, Nepali rupee weakened against euro as well as pound sterling. Rupee shed Rs 1.60 paisa against a euro and 79 paisa against a pound sterling. On Friday, a euro was exchanged at Rs 95.21 and a pound sterling at Rs 114.41.
Bullion
Gold became cheaper by Rs 255 per 10 gram in the local market this week. On Friday, its price settled to Rs 30,095 per 10 grams.
According to Nepal Gold and Silver Dealers Association, which sets prices of the yellow metal in the secondary market, gold was traded at Rs 30,350 on Sunday. Amid rise in its demand, yellow metal gained Rs 85 on Monday, but its prices soon started to spiral down.
Compared with the previous day, gold price dropped by Rs 85 on Tuesday and by a further Rs 170 on Wednesday. Even though price jumped by Rs 125 per 10 grams on Thursday, it slid Rs 210 per 10 grams overnight on Friday, when the market closed this week.
Likewise, the price of silver to went down in the local market. On Friday, silver was traded at Rs 473 per 10 grams.
As Nepal is totally dependent on international market to meet its domestic bullion demand, any fluctuation in the global market is directly reflected in domestic prices.
Related story
Rupee weakens, gold loses shine
