KATHMANDU, Oct 12: Nepali rupee shed a whopping 2.12 percent against US dollar over this week, as the Indian currency - with which rupee is pegged - slid amid rise in demand for greenback, particularly for oil imports, in the southern neighbor.
Gold also became expensive by Rs 712 per tola (11.664 grams) as global investors shifted to safe haven in the wake of instability in the currency markets.
Nepali rupee fell by Rs 1.76 against a US dollar over the week. This rendered imports expensive, but raised receipts for exporters and remittance receivers. On Friday, a dollar was exchanged at Rs 84.75.
Nepal Rastra Bank (NRB), country´s monetary authority, had opened the trading Sunday with exchange rate of dollar set at Rs 82.99. As demand by oil importers buoyed dollar in India, rupee fell by 26 paisa on Monday, plummeted by another 86 paisa on Tuesday and further weakened by 39 paisa on Wednesday. Rupee shed another 73 paisa against a dollar on Thursday. However, it regained 48 paisa when the market closed on Friday.
Likewise, rupee weakened by Rs 1.33 against a euro and Rs 1.46 against a pound sterling over the week. A euro was exchanged at Rs 109.23 on Friday, while a pound sterling closed at Rs 135.77 this week.
Gold became expensive by Rs 610 per 10 grams this week as weakening of rupee and shift of global investors toward safe haven caused raised gold imports cost. The yellow metal was traded at Rs 51,140 per 10 grams on Friday.
Bullion trading had opened this week with gold priced at Rs 50,530 per 10 grams on Sunday. However, as currency volatility seen in the global markets drove investors toward safe haven gold price gradually inched up over the next four trading days. Prices issued by Nepal Gold and Silver Dealers Association (Negosida) show gold in the local market became expensive by Rs 53 per 10 grams on Monday.
Its price rose by another Rs 257 per 10 grams on Tuesday, Rs 150 per 10 grams on Wednesday and further Rs 210 per 10 grams on Thursday. The yellow metal´s rally stopped on Friday, as it shed Rs 60 per 10 grams when market closed this week on Friday.
The price of silver, on the other hand, went up by Rs 2 per 10 grams. Silver was traded at Rs 1,016 per 10 grams on Friday.