Rupee weakens, gold jumps over Rs 25k

REPUBLICA
KATHMANDU, Sept 4: Nepali currency continued its downward spiral against the US dollar over this week as well, as the greenback gained against the Indian currency to which the Nepali rupee is pegged. The currency´s drop along with the rise in the international price of gold, on the other hand, caused the yellow metal to jump sharply in the domestic market over the period.

Currency
Despite initial gain, the Nepali rupee weakened by 32 paisa vis-à-vis the US dollar this week. One dollar was valued at Rs 78.77 per dollar on Friday.Nepal Rastra Bank, the country´s monetary authority, had fixed the Nepali currency at Rs 78.45 per dollar on Sunday. Subsequent to a decline in the value of the greenback against Indian currency, the rupee gained against US dollar on Monday by 30 paisa. But it caught a devaluation trend from Tuesday, dropping to Rs 78.38 per dollar Wednesday and losing a further 28 paisa against the greenback Thursday.
The rupee gained against the euro and pound sterling by 24 and 31 paisa respectively over the week. One euro was exchanged at Rs 112.18 Friday, while one pound sterling exchanged for Rs 127.43 the same day. Going by the open market exchange regime, the rate varied marginally among the commercial banks.

Bullion
Gold became more expensive by Rs 86 per 10 grams on Friday compared to Sunday, as international prices soared amid rising demand over the week. Dealers traded the yellow metal at Rs 25,250 per 10 grams Friday.
According to Nepal Gold and Silver Dealers´ Association (NGSDA), gold traded at Rs 24,390 per 10 grams Sunday. The price of the precious metal jumped Rs 44 per 10 grams on Monday, but it eased to Rs 24,305 per 10 grams Tuesday. The price rallied thereafter, jumping to Rs 130 overnight on Wednesday and further soaring by more than Rs 300 Thursday and an additional Rs 400 on Friday.
Silver too went up sharply to Rs 400 per 10 grams by Friday. As Nepal fulfills its domestic bullion requirements through imports, any fluctuation in international prices directly impacts domestic prices.