Similarly, the prices of gold in the local market also went down as the demand for yellow metal fell worldwide on the back of strong Euro and declining oil price. [break]
Currency
The exchange rate of Nepali currency with US dollar, which has been passing through a series of upheavals, remained relatively stable this week, though a minor devaluation of around 0.3 percent was recorded during period.
A US dollar was sold at Rs 74.65 in the beginning of the week, but Nepali rupee depreciated as the greenback was sold at Rs 74.86 at the weekend. However, the mean exchange rate of the week was fixed at Rs 74.65 as the selling rate of greenback dropped to Rs 74.15 per dollar, the lowest rate of the week.
According to money traders, increasing demand for greenback amid declining international prices has slightly weakened Indian Currency. Changes in Nepali rupee exchange rate directly depend upon fluctuations in Indian currency as Nepali currency maintains a fixed exchange rate with the Indian currency.
Similarly, Nepali rupee strengthened slightly against the pound sterling with its selling rate set at Rs 91.48 at the end of week whereas it was Rs 92.13 at beginning. In the like manner, the strengthening of Nepali rupee continued against the Euro which was exchange at Rs 91.48 at the closing day of the week.
Bullion
The price of gold in the local market declined by Rs 685 per 10 gram at the end of the week to settle at Rs 30,350 per 10 grams on Friday.
According to Nepal Gold and Silver Dealers Association that determines prices of the yellow metal in the secondary market, the market opened this week at Rs 31,035 per 10 grams but dropped to Rs 30,820 on Wednesday. However, gold price increased by Rs 155 per 10 grams before going down by Rs 625 per 10 grams to Rs 30,350 on Friday.
Nepal´s leading gold dealers say that strengthening Euro along with declining global oil price has weakened the demand for yellow metal in the international markets, thereby lowering its prices in the local market.
As the country is totally dependent on international market for domestic bullion demand, any fluctuation in the global market is directly reflected in domestic prices.
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