Gold cheaper despite rupee devaluation

KATHMANDU, July 31: Nepali currency depreciated against US dollar this week as greenback gained against Indian currency with which rupee is pegged. Despite devaluation of currency, gold became cheap in the domestic market on Friday compared to Sunday due to decline in its international price. CurrencyNepali rupee slipped 15 paisa against a US dollar over this week and stood at Rs 77.81 per dollar on Friday.Nepal Rastra Bank (NRB), the monetary authority of the country, had fixed Nepali currency at Rs 77.66 per dollar on Sunday. As US dollar slipped against the Indian currency with which rupee is pegged, rupee gained against dollar over the next four days touching as high as Rs 77.40 per dollar on Wednesday. However, rupee spiraled down over the next two days, losing 41 paisa per dollar on Friday, compared to Wednesday.Rupee appreciated against euro and pound sterling by Rs 66 paisa and 26 paisa respectively over the week. On Friday, a euro was exchanged at Rs 109.62 and a pound sterling at Rs 128.14. Going by the open market exchange regime, the rate may vary with the commercial banks.BullionThe price of gold went down by Rs 38.50 per gram in the domestic market this week, as the drop in the international prices of yellow metal dragged down its retail rates. Gold was traded at Rs 23,705 per 10 gram on Friday.According to Nepal Gold and Silver Dealers Association (NGSDA), Gold was traded at Rs 24,090 per 10 gram on Sunday. As international prices rose, it became as expensive as Rs 24,135 per 10 gram on Tuesday. However, the price went down over the next two days, touching Rs 23,665 Thursday. Due to a slight rise in the global rate, its price inched up marginally Friday.Contrary to gold, the price of silver soared to Rs 398.50 per 10 grams on Friday. As Nepal fulfills domestic bullion requirements through imports, any fluctuation in international prices directly impacts the domestic prices.
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