The news also caused international gold price to rally to four-and-a-half month high on Friday, causing the yellow metal hit yet another high of Rs 58,903 per tola (11.664 grams) in the domestic market.[break]
Currency
Nepali rupee strengthened by 81 paisa against a US dollar over the week. This lowered cost of import, but dragged down income of remittance receivers as well as exporters. On Friday, a dollar was valued Rs 88.59.
Nepal Rastra Bank (NRB), country´s monetary authority, had opened the trading Sunday with exchange rate of dollar set at Rs 89.40. Though rupee shed 5 paisa on Monday, rupee started its upward swing from Wednesday after media reported news of possible bond buying by the US Federal Reserve, showcasing shift in global risk asset that put dollar under pressure. This caused rupee to gain 31 paisa overnight on Wednesday and further 17 paisa against a dollar on Thursday. Rupee also gained 38 paisa on Friday when the market closed this week.
Contrary to dollar, rupee shed 62 paisa against a euro and 36 paisa against a pound sterling over the week. A euro was exchanged at Rs 111.19, while a pound sterling was valued Rs 140.83 on Friday.
Bullion
Gold became expensive by Rs 1,115 per 10 grams over the week in the domestic market, as its international demand soared amid news of US Federal Reserve´s hint of monetary intervention. On Friday, gold was traded at all time high of Rs 50,500 per 10 grams in the domestic market.
Bullion trading had opened this week with gold priced at Rs 49,385 per 10 grams on Sunday. But prices soon rallied amid Fed´s news that weakened dollar. Though gold price inched up by meager Rs 85 per 10 grams on Monday, it soared by whopping Rs 300 per 10 grams on Wednesday and further rose by Rs 470 per 10 grams on Thursday. The yellow metal became expensive by further Rs 260 per 10 grams overnight on Friday, inciting fears among traders of possible drop in festive sales.
Demand for gold had soared lately due to upcoming Teej Festival, but if the prices continued to rally, traders fear they might find fewer buyers during the festive season.
Price of silver also increased by Rs 55.50 per 10 grams over the week. On Friday, silver was traded at Rs 943 per 10 grams.
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