KATHMANDU, Feb 22: Nepali rupee weakened against US dollar this week as the Indian currency, with which rupee is pegged, weakened in India. Despite weakening of rupee, gold price dropped in the domestic market by Rs 600 per ten grams.[break]
Currency
Nepali rupee weakened by Rs 1.09 against US dollar over the week to close at 87.59 on Friday. The Nepali currency weakened this week as the India currency fell to one and a half months low on Thursdays as global risk aversion pushed local stocks sharply lower, with the currency awaiting cues from the federal budget next week.
According to agencies, global risk assets were pummeled as world share markets fell and the dollar and safe-haven assets rose after the Federal Reserve´s last policy meeting cast doubts over how much longer the US central bank would stick to its stimulus plan.
The rupee started trading at Rs 86.50 per dollar when the market opened for the week on Sunday. The currency lost 55 paisa the next day to stand at Rs 87.05. Although the currency showed sign of strengthening after gaining 5 paisa on Wednesday and another 21 paisa on Thursday to close at Rs 86.79, it ended the week at Rs 87.59 on Friday.
Nepali rupee weakened against the euro but gained a whopping Rs 5.36 paisa against British Pound. On Friday, euro was exchanged at Rs 115.65 while British Pound was valued Rs 133.18.
Bullion
Gold became cheaper by Rs 600 per 10 grams over the week. Bullion trading opened this week with gold priced at Rs 48,870 on Sunday. The yellow metal became expensive by Rs 170 per 10 grams to Rs 49,040 per 10 grams on Monday. Though the price remained stable on Tuesday, it went down by Rs 170 per 10 grams on Wednesday. On Thursday, the price came down by a whopping Rs 1,115 per 10 grams.
Mani Ratna Shakya, coordinator of Nepal Gold and Silver Dealers Association, gold price went down in the domestic market on Thursday as the yellow metal lost its luster in the international bullion market. “Demand for gold was low on Thursday, as investors put more money on international stocks,” he said, adding that instability in gold prices in the international market is making gold prices fluctuate in the domestic market.
The price, however, rose by Rs 515 per 10 grams to close the week´s trading at Rs 48,270 per 10 grams.
Similarly, price of silver went down by Rs 21.5 paisa over the week. On Friday, silver was traded at Rs 904.5 per 10 grams.
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