Rupee weakens, gold glitters on Brexit

Published On: June 25, 2016 04:10 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, June 25:Nepali rupee lost 20 paisa against US dollar this week as the Indian currency, with which rupee is pegged, lost value against the greenback. Gold price, on the other hand, went up by Rs 1,745 per 10 grams over the week.

Nepal Rastra Bank (NRB), the central monetary authority, had opened currency trading on Sunday with dollar's value fixed at Rs 107.76.

Rupee gained 13 paisa against on Monday to settle at 107.63 against the dollar. On Tuesday, rupee lost 52 paisa against US dollar to 108.15. The local currency shed another 17 paisa against the greenback on Wednesday to close the day's trading at 108.32. Rupee continued its losing run on Thursday as well as it depreciated by 4 paisa to 108.36. The local unit, however, rallied against US dollar on Friday, to close the week's trading at 107.96.

According to Reuters, Reserve Bank of India likely sold dollars around IRs 68.20 levels through state-owned banks to prevent the rupee from falling further, three traders said on Friday, adding that appeared to be the level the central bank was keen on defending.
Meanwhile, rupee lost Rs 1.62 paisa against euro and a mammoth Rs 6.71 against Pound Sterling over the week. On Friday, a euro exchanged at Rs 122.84, while Pound Sterling was valued Rs 160.65. 


Gold price went up by Rs 1,745 per 10 grams this week in the domestic market as the international bullion market remained volatile with investors preferring the yellow metal after UK voted to leave European Union.

Trading opened on Sunday with price of gold fixed at Rs 48,870 per 10 grams. Price of gold came down by Rs 175 per 10 grams to Rs 48,695 on Monday. Though the price remained unchanged on Tuesday, it came down by another Rs 255 per 10 grams on Wednesday to Rs 48,440. On Thursday also, gold price fell by Rs 430 per 10 grams to settle at Rs 48,010. However, the yellow metal rallied to a two-year high of Rs 50,585 per 10 grams, gaining Rs 2,575 per 10 grams on Friday due to price movement in the global market after UK voted to separate from EU.

Similarly, price of silver went up by Rs 17 per 10 grams this week. On Friday, silver was traded at Rs 703 per 10 grams. 

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