Rupee slumps to another low of 98.6 against USD

Gold price down by Rs 255 per 10 grams

KATHMANDU Aug 9: Nepali rupee slumped to record low of 98.60 against US dollar this week after the Indian currency, with which rupee is pegged, weakened against the greenback.



The local currency shed 25 paisa against US dollar over the week. Despite rupee´s depreciation, gold price went down by Rs 255 per 10 grams over the week.



Currency

Nepali rupee lost 25 paisa against US dollar over the week to close at Rs 97.80 on Friday. Nepal Rastra Bank (NRB), the central monetary authority, opened currency trading on Sunday with exchange rate of rupee against US dollar set at 97.55. Rupee lost 50 paisa to 98.05 on Monday. Though the local currency gained 32 paisa on Tuesday to close at Rs 97.73, it shed a whopping 87 paisa to 98.60 on Wednesday. [break]



According to Reuters news agency, the Indian currency slid to a record low against US dollar on Wednesday after the Reserve Bank of India (RBI) began engineering an increase in short-term money market rates to attract speculators. This happened as rising overnight rates led to higher long-term borrowing costs, threatening to cause a fresh spate of bad loans, Reuters said.



Rupee, however, rallied over the next two days, gaining 60 paisa on Thursday and another 20 paisa on Friday to close at 97.80.

Likewise, the local currency shed Rs 1.78 against Euro and a whooping Rs 4.28 against Pound Sterling this week. A euro was valued Rs 130.61 on Friday, while the British Pound was exchanged at Rs 151.67.



Bullion

Gold also lost its shine this week as the price of yellow metal went down by Rs 255 per 10 grams. Gold was traded at Rs 45,440 on Friday. Bullion trading had opened this week with gold price fixed at Rs 45,695 on Sunday.



Though gold price remained stable on Monday, it went down by Rs 425 per 10 grams to Rs 45,270 on Tuesday. Gold became cheaper by further Rs 430 per 10 grams to close at Rs 44,840 on Wednesday. The yellow metal, however, became dearer by Rs 345 per 10 grams to Rs 45,185 on Thursday. Gold price increased by another Rs 255 per 10 grams to close at Rs 45,440 per 10 grams on Friday - the last trading day of the week.

Meanwhile, price of silver increased by Rs 4.50 per 10 grams this week. Silver was trad

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