Rupee strengthens against US dollar, gold price down

KATHMANDU, July 4:

Nepali currency gained 56 paisa against US dollar over the week as the Indian currency, with which rupee is pegged, gained value against the greenback. Gold price, on the other hand, came down by Rs 340 per 10 grams this week.

CURRENCY

Rupee gained 56 paisa this week against US dollar to settle at 95.88 on Friday. Nepal Rastra Bank (NRB), the central monetary authority, had opened currency trading on Sunday with exchange rate of US dollar fixed at Rs 96.44.

Though the exchange rate remained unchanged on Monday, domestic currency lost 14 paisa on Tuesday to settle at 96.58 against the US dollar. The local currency railed on Wednesday gaining 16 paisa to close at 96.42. On Thursday, rupee gained 61 paisa to settle at 95.81. Rupee lost 7 paisa on Friday to close the week´s trading at 95.88.

According to Reuters, Indian rupee retreated after hitting a near three-week high on Thursday as good dollar demand from state-run banks on behalf of both importers and the central bank offset inflows seen with foreign banks. Dealers said though sentiment for the rupee was positive in the near term, sharp gains are unlikely due to the central bank´s reluctance to let the currency appreciate sharply, Reuters stated.

Meanwhile, the local currency gained 45 paisa against euro but lost nominal 2 paisa against Pound Sterling over the week. A euro was exchanged at Rs 130.89 on Friday, while the Pound Sterling was valued at Rs 164.24.

BULLION

Gold price went down by 340 per 10 grams over the week. Bullion trading had opened on Sunday with price of gold fixed at Rs 46,295 per 10 grams. On Monday, price of gold decreased by 170 per 10 grams to Rs 46,125. On Tuesday, however, price of the yellow metal increased by Rs 345 per 10 grams to Rs 46,470. Price of gold dwindled down by Rs 175 per 10 grams to 46,295 on Wednesday. Gold price continued to fall on Thursday as well losing Rs 340 per 10 grams to settle at Rs 45,955. Price of the yellow metal remained unchanged on Friday.

Similarly, price of silver went down by Rs 8.5 per 10 grams this week. On Friday, silver was traded at Rs 711.5 per 10 grams.

Source: Republic