This made, gold, which Nepal imports paying foreign currency, cheaper in the local market. Decline in demand for the yellow metal in the international market also contributed in its price drop. [break]
Currency
Nepali currency gained 1 paisa against a US dollar, nominally rendering imports cheaper and affecting income of exporters as well as remittance receivers. On Friday, a dollar was exchanged at Rs 75.04. A US dollar was sold at Rs 75.05 when the market opened this week on Sunday.
As demand for the greenback slid amid declining international prices, Nepali rupee gained 10 paisa against a dollar on Monday. However, rupee dropped 15 paisa on Tuesday and further slid 19 paisa on Wednesday as dollar bounced back against Indian currency with which Nepali rupee is pegged.
On Thursday, rupee gained 30 paisa, but it failed to sustain the gain when the market closed on Friday.
Nepali rupee, on the other hand, weakened against euro as well as pound sterling. Rupee shed 11 paisa against a euro and 61 paisa against a pound sterling. On Friday, a euro was exchanged at Rs 95.56 and a pound sterling at Rs 114.63.
Bullion
Gold became cheaper by Rs 40 per 10 gram in the local market this week. The yellow metal settled at Rs 30,265 per 10 grams on Friday.
Nepal Gold and Silver Dealers´ Association, which sets prices of the yellow metal in the market, had opened the market this week with gold priced Rs 30,350 on Sunday. As the demand for gold remained fairly stable, price of the yellow metal remained fairly constant with nominal drops in between the trading days.
On Tuesday, it dropped Rs 85, but bounced back to Rs 30,305 per 10 grams again on Wednesday. It became dearer by Rs 45 per 10 grams on Thursday, but again its value slid by Rs 85 per 10 grams on Friday.
The price of silver, meanwhile, jumped in the local market. Silver was traded at Rs 483 per 10 grams on Friday.
As Nepal is totally dependent on international market for its domestic bullion demand, any fluctuation in the global market is directly reflected in the domestic market.
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