Gold price, on the other hand, jumped to new high and receded marginally in the domestic market, as investors´ wariness over worsening financial crisis in Greece caused its price to shoot up in the international market. [break]
Currency
After suffering a sharp drop last week, Nepali currency bounced back, gaining 86 paisa against a US dollar over the week. The appreciation of Nepali rupee rendered imports cheaper, but also dragged down income of exporters and remittances receivers. A US dollar was exchanged at Rs 72.41 on Friday.
Nepal Rastra Bank, country´s monetary authority, had fixed the exchange rate of a dollar at Rs 73.27 on Sunday. As greenback witnessed a drop in demand in India, Nepali rupee gained 22 paisa against a dollar on Monday and further 95 paisa on Tuesday.
However, it shed 40 paisa overnight on Wednesday and remained stable on Thursday. It gained nine paisa against the greenback when the market closed on Friday.
Likewise, Nepali rupee gained Rs 1.01 against a euro. But it shed 38 paisa against a pound sterling over the week. On Friday, a euro was exchanged Rs 91.77 and a pound sterling was valued at RS 107.79.
Bullion
As reports of deepening financial crisis in Greece turned global investors wary and pushed gold prices in the international market, gold touched a new high in the domestic market.
However, the price receded marginally on Friday. Net impact of the crisis, nonetheless, rendered gold expensive by Rs 26.5 per gram in Nepal over the week. On Friday, gold was traded at Rs 29,630 per 10 grams.
The impact of Greek crisis had its impact in the market on the very first day of the week, as Nepal Gold and Silver Dealers´ Association set the price at Rs 29,365 per 10 grams on Sunday. The price was a sharp jump compared to closing price of the last week.
Although the price recorded an overnight drop of Rs 400 per 10 grams on Monday, it started to rally yet again, gaining Rs 85 on Tuesday and Rs 750 on Wednesday. Consumers witnessed gold hitting yet another record of Rs 29,800 per 10 gram on Thursday. However, on Friday, the price dropped by Rs 170 per 10 grams.
The price of silver too went up sharply in the domestic market this week. Silver closed at Rs 480 per 10 grams on Friday.
As Nepal fulfills domestic demand of gold and silver through imports, any changes in their global prices directly impact the prices in the local market.
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