Rupee gains value, gold price jumps

KATHMANDU, Sept 3: Nepali currency strengthened vis-à-vis US dollar this week, as the greenback witnessed downturn in demand in India with which currency the Nepali rupee is pegged.



Bullion market that has been in jitters due to short supply, soaring demand and black marketing, continued to turn consumers nervous throughout the week, as the precious yellow metal touched new high and multiple rates confused consumers. [break]



Currency



Despite initial dip, Nepali currency bounced back on Friday, helping rupee record a net gain of 10 paisa vis-à-vis a US dollar over the week. On Friday, a dollar was exchanged at Rs 75.15.



Nepal Rastra Bank -- country´s monetary authority -- had set the exchange rate of US dollar at Rs 75.25 when the market opened Sunday. But as the dollar strengthened against the Indian currency, the Nepali rupee shed value over the next four days.



On Monday, rupee weakened by 5 paisa and on Wednesday it further shed 30 paisa. While rupee on Thursday maintained its worth, it gained 45 paisa overnight on Friday.



Nepali rupee gained 82 paisa against a pound sterling as well, but weakened by 71 paisa against a euro this week. On Friday, a pound sterling was exchanged at Rs 115.88, while a euro was exchanged at Rs 96.30.



Bullion



The price of gold jumped Rs 385 per 10 grams this week as festive buying soared, causing shortage of yellow metal deepen in the market. As different agencies announced their own retail rates, consumers were forced to pay as much as Rs 3,000 more for a tola (11.665 grams) of gold than the international prices.



Nepal Gold and Silver Dealers´ Association (Negosida) and Nepal Gems and Jewelry Association (NEGJA) announced different prices of gold in the market. But both the prices were much higher than the international rates and consumers paid as much as Rs 31,295 for 10 grams of the yellow metal.



With rise in demand due to festive season, the dealers jacked up the price further to Rs 31,850 per 10 grams on Tuesday. Price eased to Rs 31,615 on Thursday, but the imposition of ban on gold import left the market in jitters on Friday.



Because of the lack of coordination and also ban on the import, Negosida did not announce any official trading rates, while NEGJA fixed the rate at Rs 31,680 per 10 grams. The price of silver too increased in the local market over this week. Silver was traded at Rs 521 per 10 grams on Friday.

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