KATHMANDU, Jan 25: Nepali rupee strengthened against US dollar over this week as the Indian currency, with which Nepali rupee is pegged, made gains after Reserve Bank of India relaxed some of the rules for foreign institutional investors buying into domestic debt.
Rupee gained 45 paisa against the dollar over the past week. Gold on the other hand became cheaper by Rs 685 per 10 grams during the period.
Nepal Rastra Bank (NRB), the central monetary authority, had the exchange rate of a US dollar at Rs 86 when the market opened for trading on Sunday. Rupee, however, fell for the next two days and was traded at Rs 86.40 per US dollar on Tuesday. However, the local currency rallied on Wednesday, gaining 25 paisa to close at Rs 86.15. It, however, lost 15 paisa on Thursday but made an overnight gain to close at Rs 85.55 paisa on Friday.
According to news agencies, Indian currency lost value against dollar on Thursday due to strong demand for the greenback by oil firms there.
Likewise, Nepali rupee gained Rs 1.01 against a Euro and Rs 1.88 against British Pound over the week. A British Pound was exchanged at Rs 135.51 on Friday, whereas a Euro was valued Rs 114.10.
Gold became cheaper by Rs 685 per 10 grams this week as the price of yellow metal went down in the international bullion market. Gold was traded at Rs 49,555 per 10 grams on Friday.
Bullion trading had opened this week with the yellow metal priced at Rs 50,240 per 10 grams on Sunday. Though the price remained unchanged for the next three trading days, it went down by Rs 85 per 10 grams on Tuesday.
Tej Ratna Shakya, president of Nepal Gold and Silver Dealers´ Association, attributed drop in gold prices to strengthening of Indian currency and decline in the price of yellow metal in the international market.
Meanwhile, price of silver went down by Rs 4.5 per 10 grams over the week. Silver was traded at Rs 964.50 per 10 grams on Friday.