Currency
Nepali currency gained 60 paisa against a US dollar this week. The gain rendered imports cheaper but dragged down income of exporters and remittance receivers. A US dollar was exchanged at Rs 71.50 on Friday. [break]
Nepal Rastra Bank, country´s monetary authority, had set the exchange rate of a US dollar at Rs 72.10 on Sunday. Although rupee weakened against a dollar marginally on Monday, it soon bounced back, gaining 50 paisa on Tuesday and further 15 paisa on Wednesday. Dollar managed to gain value on Thursday though, causing rupee shed 7 paisa on the day, but rupee again gained 3 paisa on Friday, compared to Thursday.
Nepali rupee also gained Rs 1.94 paisa against a euro and 92 paisa against a pound sterling this week. On Friday, a euro was exchanged at Rs 95.25 and a pound sterling was traded at Rs 108.59.
Bullion
Gold became expensive by Rs 25.50 per gram in the domestic market, as international prices jumped amid devaluation of dollar. On Friday, gold was traded at Rs 28,035 per 10 grams.
Nepal Gold and Silver Dealers´ Association, which sets the price of gold in the local market, had opened trading at Rs 27,780 per ten grams on Sunday. As global prices remained stable, the domestic gold price remained unchanged on Monday. On Tuesday, however, gold lost its shine, losing value by Rs 130 per 10 grams.
But prices soon bounced back in line with the international trend. As a result, gold became dearer by Rs 215 per 10 grams on Thursday, compared to Wednesday, and the price further jumped by Rs 170 on Friday. The price of silver too shot up to Rs 441.50 per 10 grams from Rs 433 this week.
As Nepal fulfills domestic bullion demand through imports, any changes in the global prices of precious metals directly impact the domestic market.
Related story
Currency war can end global US dollar dominance & those who own...
_20220508065243.jpg)
