Currency
Partial convertible Nepali rupee weakened by 35 paisa vis-à-vis US dollar this week, as the greenback strengthened against the Indian rupee, with which our currency is pegged.
Nepal Rastra Bank (NRB), the central bank, had fixed the selling rate of a US dollar at Rs 82.80 on Sunday. While it soared to Rs 83.30 on Tuesday and Wednesday, the exchange rate of US dollar marginally retracted to close at 83.15 on Friday.
The rupee weakened against euro by 92 paisa, and closed at Rs 106.03 per euro (€) this week. It appreciated against pound sterling (£) by Rs 3.01 and closed at Rs 115 per pound this week. As per the existing open-market exchange rate policy, rates quoted by different banks could differ.
Bullion
Gold price dropped by Rs 13.5 per gram over the week, and was traded at Rs 24,865 per 10 grams in the local market Friday. Bullion dealers attributed the decline to the downturn in international gold market.
According to Nepal Gold-Silver Dealers Association, the market had opened at Rs 25,000 per 10 grams on Sunday. While it was maintained at this level for three trading days, the gold price suddenly lost Rs 565 per 10 grams overnight on Wednesday and was traded at Rs 24,435. On Thursday and Friday, however, it climbed upward and closed at Rs 24,865 on Friday.
The price of silver, however, remained constant over the week and closed at 353 per 10 grams on Friday. Since Nepal fulfills its domestic bullion demand from the international market, any fluctuation in the prices in the global market is reflected in the domestic prices.
Stock market
Nepal Stock Exchange (NEPSE) shed 4.15 points in its index as the country’s sole secondary market failed to lure investors in the midst of bearish outlook.
According to NEPSE statement, the market had opened at 671.35 points on Sunday. Although it gained 0.9 points on Monday, the index spiraled downward over the remaining trading days and closed at 667.20 points on Friday.
During the week, 638,700 units of share changed hands at NEPSE’s floor at Rs 276.25 million, which was 1.86 percent decline against the turnover recorded last week. Over 415,100 units of shares were traded during the last week.
Of the total transactions, transactions of Category A companies’ shares valued Rs 134 million, which was 48.53 percent of the total turnover.
Performance of different groups at NEPSE this week shows, index of commercial banks dropped 8.58 points. While development bank gained 7.73 points, index of finance companies dropped 3.05 points.
Insurance and others group gained 0.65 points and 2.35 points respectively, while indices of manufacturing and hotels groups remained unchanged throughout the week.
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