Currency
Nepali currency gained 66 paisa against a US dollar, rendering imports cheaper but slashing income earning for exporters and remittance receivers this week as well. A dollar dropped below Rs 74 and was exchanged Rs 73.94 on Friday.
Nepal Rastra Bank, country´s monetary authority, had fixed the exchange rate of a dollar at Rs 74.60 on Sunday. Although rupee marginally weakened against greenback on Monday, it recorded a consistent appreciation on the following days, as dollar witnessed a drop in value against the Indian currency with which Nepali rupee is pegged. For instance, rupee gained 53 paisa on Thursday compared to Wednesday and again gained 20 paisa against a dollar on Friday.
Likewise, rupee recorded a gain of 39 paisa against a pound sterling this week, but weakened by 68 paisa against a euro. On Friday, a pound sterling was exchanged at a rate of Rs 119.01, while a euro was exchanged at Rs 110.48. Going by the open market exchange regime, the rate varied marginally among the commercial banks.
Bullion
Gold price skyrocketed to a new high, but the prices eased down when the market closed down on Friday this week. The precious metal became cheap by Rs 5 per 10 grams in the domestic market during the period. Dealers who traded the gold at Rs 25,420 per 10 grams on Friday attributed the fluctuation to the sharp upheavals seen in the prices of gold in the international market.
Nepal Gold and Silver Dealers Association, which sets domestic prices of gold based on the price movement at New York COMEX House, had opened the trading on Sunday at Rs 25,425 per 10 grams. As the international prices soared in the wake of devaluation of dollar against major rival currencies, gold became expensive by Rs 210 per 10 grams on Tuesday and further Rs 100 on Wednesday. However, the price dropped by Rs 215 per 10 grams on Thursday and further Rs 130 on Friday, as gold prices receded in the international market.
The price of silver too soared to Rs 441.50 per 10 grams, creating a new record in the domestic market this week. However, the price receded to Rs 439 per 10 grams when the market closed on Friday. As Nepal fulfills domestic bullion requirements through imports, any fluctuation in international prices directly impacts the domestic prices.
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