KATHMANDU, Aug 10: Nepali rupee strengthened against the US dollar over the week as the Indian currency, with which domestic currency is pegged, made gains. Gold, meanwhile, became expensive in the local market.
Nepali rupee, which was traded at Rs 89.17 per US dollar when the market opened on Sunday, gained 48 paisa over the week to close at Rs 88.69 on Friday. The strengthening of Nepali rupee will make imports cheaper but will put a strain on remittance income that the country receives from people working abroad.
The statistics provided by Nepal Rastra Bank shows that rupee, which opened at Rs 89.17 per dollar, shed 33 paisa the next day to stand at Rs 89.50. On Tuesday, however, the central bank set the exchange rate at Rs 88.81 - marking a gain of 69 paisa. On Wednesday, Nepali rupee again lost its strength by 7 paisa to stand at Rs 88.88. This loss was recouped on Thursday when exchange rate was set at Rs 88.70, prior to closing at Rs 88.69 for the week on Friday.
Nepali currency made gains over the week as Indian rupee, according to international news reports, has stabilized around IRs 55 per dollar lately after hitting a record low of 57.33 in late June.
The performance of Nepali currency against other major currencies, namely euro and British pound, however, deteriorated over the week. Nepal Rastra Bank report shows rupee shedding 67 paisa against euro to close at Rs 109.43 on Friday. Nepali rupee also weakened against British pound to close at Rs 138.80 on Friday against Sunday´s rate of Rs 108.76.
Gold price went up by Rs 85 per 10 grams in the local market over the week. The yellow metal, which was traded at Rs 48,870 per ten grams on Sunday, fell to Rs 48,525 on Monday. The loss was recuperated partially on Tuesday with price climbing to Rs 48,695 per 10 grams. The price remained stable until Thursday, and on Friday it climbed further to reach Rs 48,955 per 10 grams.
“The price of gold went up marginally due to fluctuation in the price of yellow metal in the international market and unstable Indian currency vis-à-vis US dollar, which affected exchange rate of Nepali currency against the greenback,” Tej Ratna Shakya, president of Nepal Gold and Silver Dealers´ Association, said.
Silver, meanwhile, lost its strength over the week as its price, which opened at Rs 883 per 10 grams on Sunday, fell to Rs 879 per 10 grams by Friday.