Rupee gains, gold price jumps

KATHMANDU, April 2: Nepali currency strengthened against US dollar this week, as the greenback shed value against Indian currency with which it is pegged. It coupled with short supply of gold, meanwhile, caused the prices of yellow metal to go up in the market.



Currency



Nepali currency strengthened by 70 paisa against a US dollar this week, rendering imports cheaper but dragging down income of exporters and remittance receivers. A US dollar was exchanged at Rs 72.10 on Friday. [break]



Rupee was exchanged at Rs 72.80 per US dollar when the market opened Sunday this week. The greenback, however, continued to lose value over the following days as its demand dropped in India with whose currency Nepali rupee is pegged. As a result, rupee gained 13 paisa against a dollar on Monday and further 32 paisa on Tuesday.



On Wednesday, however, rupee shed 5 paisa, only to regain 20 paisa against a dollar on Thursday. On Friday, rupee gained another 10 paisa a dollar when the market closed.



Nepali rupee also gained a marginal 1 paisa against a euro this week, but weakened against a pound sterling by a whopping Rs 1.59. On Friday, a euro was exchanged at Rs 97.19, while a pound sterling was traded at Rs 109.51.



Bullion



Gold became expensive by Rs 13 per gram in the domestic market, as traders jacked up the prices in the wake of short supply of the yellow metal in the market. Dealers, who traded gold at Rs 27,780 per 10 grams on Friday, said that the supply of gold has dwindled especially as the government has not eased its import provisions.



Nepal Gold and Silver Dealers Association, which sets the price of gold in the local market, had opened trading at Rs 27,650 per 10 grams on Sunday.



As international prices remained fairly stable, the domestic price went up by Rs 45 per 10 grams on Tuesday, but dropped by Rs 85 per 10 grams overnight on Wednesday. Since then, dealers jacked up the prices, making gold expensive by Rs 40 per 10 grams on Thursday and further Rs 30 on Friday.



Likewise, the price of silver too shot up to Rs 433 per 10 grams from Rs 416 in the local market this week.



As Nepal fulfills domestic bullion demand through imports, any changes in the global prices of precious metals directly impact the domestic market.

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