Rupee gains, gold price keeps soaring

KATHMANDU, Nov 27: Nepali currency gained against US dollar, as globally weakening dollar failed to lure investors in the Indian market as well, this week. Gold price, on the other hand, continued to follow the suit of international trend and galloped to the new record of Rs 33,700 per tola (11.664 gram) on Friday. 

Currency

Nepali currency strengthened by 28 paisa against a US dollar over this week. A dollar was exchanged at Rs 74.55 on Friday.

Nepal Rastra Bank had fixed the exchange rate of a dollar at Rs 74.83 on Sunday. On the back of slipping dollar against the Indian currency, with which Nepali rupee is pegged, Nepali currency gained 23 paisa on Tuesday. However, this trend reversed overnight on Wednesday, but rupee bounced back and gained 26 paisa (as compared with Wednesday) against a dollar on Friday.

Rupee, however, weakened against a euro by 93 paisa, but it recorded a gain of 77 paisa against a pound sterling this week. On Friday, a euro was exchanged at Rs 112.51, while a pound sterling was exchanged at Rs 123.72.

Bullion

Gold price continued its upward spiral and touched a new high of Rs 28,895 per 10 grams, gaining Rs 945 over this week, in the domestic market. The yellow metal dealers, who are catering to investors rather than general consumers these days, attributed the rise to sharp increment in the price in the international market.

Nepal Gold and Silver Dealers´ Association, which sets domestic price of gold based on the price movement at New York COMEX House, had opened the market at Rs 27,950 per 10 grams on Sunday. With international prices escalating, gold price broke records on every following days of the week.

On Monday, gold became expensive by Rs 200 per 10 grams, and the price further jumped by Rs 230 by Wednesday and additional Rs 340 on Thursday. On Friday, too, it recorded an overnight jump of Rs 175 per 10 grams.

The price of silver also soared to Rs 465 per 10 grams on Friday in the domestic market.

REPUBLICA