KATHMANDU, June 7 : Nepali rupee weakened by 65 paisa against US dollar this week as the Indian currency, with which rupee is pegged, weakened. Gold, on the other hand, became dearer by Rs 985 per 10 grams over the week.
Currency
Rupee lost 65 paisa against US dollar over the week to close at Rs 91.25 on Friday. This raised import costs but also raised receipt of exporters as well as remittance receivers.[break]
Nepal Rastra Bank (NRB) - the central monetary authority - set exchange rate of US dollar at Rs 90.6 when the market opened for trading on Sunday. Rupee shed 10 paisa on Monday and 35 paisa a day later to close at Rs 91.05 on Tuesday. The local currency, however, bounced back, gaining 30 paisa on Wednesday to close at Rs 90.75.
According to Reuters, the Indian rupee approached a record low as fears of an end to the US Federal Reserve´s monetary stimulus sent the dollar higher and hit local shares.
On Thursday, rupee dropped 15 paisa to close at Rs 90.9. Rupee shed another 35 paisa on Friday -- the final trading day of the week -- to close at Rs 91.25.
Rupee also lost Rs 1.64 against Euro and a whopping Rs 3.16 against the British Pound this week. On Friday, Euro was exchanged at Rs 119.73, while British Pound was valued Rs 140.93.
Bullion
Gold became expensive by Rs 985 per 10 grams in the domestic market over the week due to price rise in international market. The yellow metal glittered in the international market as investors sought safer assets after a private US jobs reading fell short of expectations. The yellow metal was traded at Rs 45,010 per 10 grams on Friday.
Bullion trading opened this week with gold priced at Rs 44,025 per 10 grams on Sunday. The yellow metal became dearer by Rs 215 per 10 grams on Monday to close at Rs 44,240. Gold further increased by Rs 560 per 10 grams to close at Rs 44,800 on Tuesday. The price, however, dropped by Rs 345 per 10 grams to Rs 44,455 on Wednesday.
Gold gained Rs 170 per 10 grams on Thursday and another Rs 385 per 10 grams on Friday to close the week´s trading at Rs 45,010 per 10 grams.
Price of silver also increased by Rs 6 per 10 grams this week. Silver was traded at Rs 752 per 10 grams on Friday.
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