Fading dollar adds shine to rupee, gold

REPUBLICA
KATHMANDU, Oct 10: Nepali currency recorded substantial gain against the US dollar as globally weakening greenback lost its weight against the Indian currency as well, with which Nepali rupee is pegged. Despite the currency appreciation, gold price soared in the domestic market, as the international gold price reached a record high this week.

Currency
Nepali currency appreciated a whopping Rs 2.10 against a US dollar, rendering imports cheaper but slashing income earning for exporters and remittance receivers over this week. A dollar was valued Rs 74.55 on Friday.
Nepal Rastra Bank had fixed the exchange rate of a dollar at Rs 76.65 on Sunday. As dollar went on to weaken against major rival currencies and also the Indian rupee with which Nepali rupee is pegged, rupee recorded a consistent gain against the greenback over the week. For instance, rupee gained 32 paisa on Tuesday, an additional 80 paisa on Wednesday, 48 paisa on Thursday and 50 paisa on Friday.
Likewise, rupee gained Rs 1.31 against a euro and Rs 2.44 against a pound sterling during the period. On Friday, a euro was exchanged at Rs 110.07, while a pound sterling was valued Rs 119.44.

Bullion
Gold became expensive by Rs 34.5 per gram in the domestic market over this week. Nepal Gold and Silver Dealers´ Association that tagged the gold price at Rs 25,425 per 10 grams on Friday attributed the rise to the increment in the price of gold in the international market.
According to the association, domestic bullion market opened on Sunday with gold priced at Rs 25,080 per 10 grams. The price receded on Monday, but as the international price soared to create a new record, gold price jumped to Rs 25,205 per 10 grams on Tuesday, went up by an additional Rs 130 on Wednesday and Rs 115 on Thursday. The price inched down marginally by Rs 35 on Friday.
Along with gold price rally, the price of silver too soared to touch record high in the domestic market this week. Silver was traded at Rs 441 per 10 grams, a record high in the country, on Friday. As Nepal meets domestic bullion requirements through imports, any fluctuation in the international prices directly affects the domestic prices.