Rupee Weakens, Gold Price Up

Nepali currency that gained against the US dollar in the initial days of the week spiralled down in the latter part of the week, resulting in a net devaluation of the rupee against the greenback during the week. Weakening of rupee along with gross increase in the international price of gold made the yellow metal expensive in the local market during the same period.

Currency

Nepali rupee devalued against the US dollar by 86 paisa over the week as greenback gained against Indian currency with which rupee is pegged. A dollar was exchanged at Rs 77.74 per dollar on Friday.

Nepal Rastra Bank (NRB), the monetary authority of the country, had fixed Nepali currency´s exchange rate at Rs 76.88 a dollar on Sunday. As US dollar slipped against the Indian currency, Nepali currency appreciated against the greenback over the next three days and was valued at Rs 76.80 on Tuesday. But it started to dip from Wednesday losing 21 paisa on Wednesday and 73 paisa on Thursday.

However, rupee gained against euro and pound sterling through this week. A euro was exchanged at Rs 109.76 on Friday, compared to Rs 110.45 on Sunday, while a pound sterling was exchanged at Rs 127.70 on Friday, down from Rs 128.80 on Sunday.

Bullion

Despite initial drop, gold price became expensive by Rs 21.50 per gram on Friday, as compared to the price on Sunday. Dealers, who traded the yellow metal at Rs 24,220 per 10 grams on Friday, attributed the rise to the devaluation of currency as well as rise in the international prices of gold.

According to Nepal Gold and Silver Dealers´ Association (NGSDA), Gold was traded at Rs 24,005 per 10 grams on Sunday. As international price dropped, it became as cheap as Rs 23,875 per 10 grams on Tuesday. But it rallied gaining Rs 90 per 10 grams overnight on Wednesday and further soared by Rs 85 on Thursday and Rs 170 per 10 grams on Friday.

The price of silver too soared to Rs 390 per 10 grams on Friday from Rs 377 of Sunday.