Rupee and NEPSE gain, gold loses

KATHMANDU, Feb 7: Nepali currency strengthened marginally against the US dollar over the week, as the greenback lost value against the Indian rupee. While the sharp rise in the international gold price caused the yellow metal to reach one record price after another in the domestic market, the country’s sole stock market also bounced back over the week, Nepal Stock Exchange (NEPSE) figures show. [break]

Currency

The partially-convertible Nepali rupee gained a nominal 10 paisa against the US dollar over the week, settling at Rs 78.50 per dollar at the end of weekly trading. Nepal Rastra Bank, the country’s central bank, fixed the dollar’s selling rate at Rs 78.60 on Sunday, but the rupee appreciated against the greenback and the rate closed at Rs 78.50 on Friday.

The rupee, however, weakened against the Euro by 76 paisa and closed at Rs 100.84 per Euro (€) this week. The domestic currency weakened against Pound Sterling (£) as well by 90 paisa and closed at Rs 113.09 per Pound this week. As per the existing open-market exchange rate policy, rates quoted by different banks could differ.

Bullion

Gold lost Rs 85 per 10 grams over the week in the local market and traded at Rs 23,150 per 10 grams Friday. According to bullion dealers, the end of the marriage season is one of the reasons for a slight decline in price in the local market.

According to Nepal Gold-Silver Dealers Association, the local market had opened at Rs 23,235 per 10 grams on Sunday. It lost Rs 430 per 10 grams on Tuesday but steadily gained thereafter to close at 23,150 per 10 grams on Friday.

Likewise, the price of silver went up to Rs 326 per 10 grams from Rs 317 this week. Since Nepal meets its domestic bullion demand from the international market, any fluctuation in prices in the global market is reflected in domestic prices.

NEPSE

The Nepal Stock exchange (NEPSE) index gained 19.75 points over the week and closed at 656.06 points on Wednesday.

According to NEPSE records, 443,417 share units of 78 companies changed hands over the three effective trading days of the week. The trading totaled Rs 199.88 million. Transactions last week had totaled almost Rs 200 million.

Among the major transactions, shares of category ‘A’ companies totaled Rs 155 million and this was almost 60 percent of total transactions recorded for the week.

As per a NEPSE statement, the index for commercial banks went up by 17.08 points and closed at 619.49 points. However, the index for insurance slipped by a whopping 59 points to settle at 857.029 points at the end of the week. Likewise, other groups gained 44.64 points to 669.69 points.