Rupee weakens against US dollar, gold prices unchanged

REPUBLICA
KATHMANDU, July 31
WEEKLY MARKET COMMENTARY (July 26-31)
The Nepali rupee weakened 4 paisa against the US dollar this week as the Indian currency -- with which rupee is pegged -- lost value against the greenback. Meanwhile, the price of gold remained constant over the week at Rs 41,155 per 10 grams.

CURRENCY
The rupee lost 4 paisa against the US dollar to close at Rs 102.62 per US$ 1 on Friday. Nepal Rastra Bank (NRB), the central regulatory bank, had opened currency-trading on Sunday with the value of the US dollar fixed at Rs 102.58.
The rupee lost 18 paisa against the US dollar on Monday to settle at Rs 102.76.  On Tuesday, the rupee further lost 18 paisa against the greenback to close at Rs 102.94. The local currency gained 35 paisa against the US dollar on Wednesday to settle at Rs 102.59. The rupee further gained 12 paisa against the US dollar on Thursday to end on Rs 102.47. The rupee however lost 15 paisa against the US dollar on Friday to close the week’s trading at Rs 102.62.
Meanwhile, the rupee lost 31 paisa against the euro and Rs 1.37 against the pound sterling over the week. A euro was exchanged at Rs 112.60 on Friday, while a pound sterling was valued Rs 160.20.

BULLION
Gold prices remained unchanged at Rs 41,155 per 10 grams over the week even as gold prices remained at the lower end this week in the international bullion market.
“Gold slipped to near 5-1/2-year lows on Friday and was on course for a sixth straight weekly fall, its longest retreat since 1999, after upbeat US economic data strengthened expectations of a near-term hike in interest rates,” Reuters said in a report Friday, adding: “Spot gold was down 0.3 percent at $1,084.80 an ounce by 0623 GMT, and has dropped more than 1 percent for the week. Bullion has lost 7.4 percent so far for the month, its steepest since June 2013.”
The Federation of Nepal Gold and Silver Dealers’ Association had opened bullion trading on Sunday with the price of gold fixed at Rs 41,155 per 10 grams on Sunday and the week’s trading ended on Friday at the same rates. Earlier last week, gold price had hit a four-year low of Rs 40,465 per 10 grams.
Similarly, the price of silver also remained unchanged at Rs 665 per 10 grams over this week.