Gold gets dearer as rupee falls

KATHMANDU, Aug 29: Nepali currency continued to lose value against US dollar over this week, as greenback gained against Indian currency with which Nepali rupee is pegged. The global bullion market, on the other hand, remained fairly stable, but gold price marginally went up in the domestic market as a direct impact of devaluation of rupee.
Currency
Despite initial gain, Nepali rupee vis-à-vis US dollar weakened by 37 paisa over this week. A dollar was valued at Rs 78.62 a dollar on Friday.Nepal Rastra Bank had fixed exchange rate of Nepali currency at Rs 78.25 per dollar on Sunday. Subsequent to a decline in value of greenback against Indian currency, with which Nepali rupee is pegged, rupee gained against US dollar over the next three days and valued at Rs 77.93 per dollar on Tuesday. Rupee, however, spiraled downwards over the next three days, dropping to Rs 78.40 per dollar on Thursday and losing further 22 paisa against the greenback on Friday.Likewise, rupee fell against euro by 66 paisa over this week and a euro was exchanged at Rs 112.10 on Friday. It, however, gained Rs 1.50 against a pound sterling over the week. According to NRB, a pound sterling was exchanged at Rs 127.41 on Friday.
Bullion
Gold price became expensive by Rs 45 per 10 grams on Friday, compared with the price on Sunday, even though its global price remained fairly stable over the week. Dealers, who traded the yellow metal at Rs 24,265 per 10 grams on Friday, attributed the rise mainly to the devaluation of currency.According to Nepal Gold and Silver Dealers´ Association (NGSDA), gold was traded at Rs 24,220 per 10 grams on Sunday. The precious metal became cheap by Rs 40 per 10 grams on Tuesday, but it soon rallied to Rs 24,265 per 10 grams on Tuesday and was traded at that price throughout the remaining days of the week. The price of silver remained constant at Rs 377 per 10 grams over this week. - REPUBLICA