KATHMANDU, Jan 18: Nepali rupee strengthened against the US dollar for the fourth straight week, as the Indian currency, with which Nepali rupee is pegged, made gains. Gold, on the other hand, became expensive by Rs 410 per 10 grams over the week.
Nepali rupee gained 60 paisa against the dollar over the week, as strengthening of the Indian currency on Thursday pushed up the value of the local currency.
The appreciation of local currency makes imports cheaper but lowers export and remittance income.
Nepali rupee opened at Rs 87.70 against the US dollar on Sunday. However, the currency shed 20 paisa on Monday to close at Rs 87.90. This value remained unchanged till Tuesday. However, the local currency showed some strength on Wednesday and appreciated by 50 paisa to close at Rs 87.40. But the gain made on Wednesday was lost by Thursday as the currency fell by 52 paisa to Rs 87.92. On Friday, the local currency once again showed some strength and rose by 82 paisa to close at Rs 87.10.
Friday´s gain came on the back of a stronger Indian rupee. Indian rupee had strengthened on Thursday as the government´s move to “partially deregulate diesel prices boosted hopes the widening fiscal deficit would gradually come down”, news agencies said.
Similarly, Nepali rupee gained 12 paisa against the euro over the week to close at Rs 116.20 on Friday. The local currency also gained Rs 2.13 against the pound sterling over the week to end at Rs 139.51 on Friday.
Gold price, which stood at Rs 50,000 per 10 grams on Sunday, went up by Rs 410 in the domestic market over the week, to close at Rs 50,410 on Friday. Gold reached its weekly peak on Thursday, when it was priced Rs 50,850 per 10 grams.
Meanwhile, silver price went up by Rs 26 per 10 grams in the domestic market over the week to close at Rs 973 on Friday, the last trading day of the week.