Currency
Nepali currency weakened against a dollar by 70 paisa over this week, rendering imports expensive, but raising export incomes and remittances. A dollar was exchanged at Rs 74.90 on Friday.
Nepal Rastra Bank had fixed the exchange rate of a dollar at Rs 74.20 on Sunday. On the back of dollar bouncing back against Indian currency, with which Nepali rupee is pegged, Nepali currency went through a consistent devaluation this week. On Tuesday, rupee lost 60 paisa and on Thursday it further shed another 21 paisa. However, compared with Thursday, rupee gained 11 paisa against a dollar when the market closed on Friday.
Rupee, on the other hand, gained against both euro and pound sterling. Compared with Sunday, rupee strengthened against a euro by Rs 1.80 and a pound sterling by Rs 1.62 when the market closed on Friday when a euro was exchanged at Rs 110.13 and a pound sterling at Rs 121.57.
Bullion
After going through sharp jumps over the last couple of months, gold price spiraled down, shedding as much as Rs 73 per gram over this week. Dealers, who traded the yellow metal at Rs 27,565 per 10 grams on Friday, attributed the fall to decline in gold prices in the international market.
Nepal Gold and Silver Dealers´ Association had opened the market at Rs 28,295 per 10 grams on Sunday. With the international prices easing, the gold shed more than Rs 200 per 10 grams overnight on Monday, and further jumped down to Rs 27,735 per 10 grams on Wednesday and Rs 27,435 on Thursday. On Friday, the gold price, however, gained about Rs 150 per 10 grams.
The price of silver also dropped to Rs 457 per 10 grams on Friday this week. As Nepal meets domestic bullion requirements through imports, any fluctuation in international prices directly impacts the domestic price.
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