KATHMANDU, July 20: Nepali rupee strengthened against US dollar over this week, as Indian currency with which rupee is pegged rebounded on the back of fresh hopes of reforms on investment rules.
Gold price dipped, albeit nominally, as demand for the yellow metal eased marginally in the international markets.
Nepali rupee gained 40 paisa against a US dollar over the week. This rendered imports cheaper, but lowered receipts of remittance receivers as well as exporters. On Friday, a dollar was exchanged at Rs 88.80.
Nepal Rastra Bank (NRB), country´s monetary authority, had opened the trading Sunday with exchange rate of dollar fixed at Rs 89.20. But rupee caught winning streak, with hiccups in between, after commitments of reforms in investment rules by the Indian government buoyed overseas investors.
Exchange rate figures of the central bank show, rupee gained 68 paisa overnight on Monday but shed 23 paisa on Tuesday. Rupee again gained 41 paisa on Wednesday but again shed 59 paisa on Thursday. On Friday, rupee again gained 13 paisa and settled at Rs 88.80 when the market closed this week.
Contrary to the US dollar, rupee shed 32 paisa against a euro and fell by Rs 1.53 against a pound sterling over the week. A euro was exchanged at Rs 109.03, while a pound sterling was valued Rs 139.07 on Friday.
Gold became cheaper by Rs 85 per 10 grams in the domestic market this week, as demand for the yellow metal dropped in international markets. On Friday, gold was traded at Rs 47,670 per 10 grams in the domestic market.
Bullion trading had opened this week with gold priced at Rs 47,755 per 10 grams on Sunday. Though price dropped by Rs 85 per 10 grams on Monday, it rallied by Rs 125 per 10 grams on Tuesday. But it shed Rs 125 per 10 grams on Wednesday. The price remained unchanged for the last two trading days of the week.
The price of silver remained unchanged over this week. On Friday, silver was traded at Rs 861.50 per 10 grams.