Rupee weakens against greenback, gold price continues to fall
KATHMANDU, Nov 7:
Nepali rupee weakened by 8 paisa against the US dollar this week as the Indian currency, with which rupee is pegged, lost value against the greenback. On the other hand, gold lost its shine by Rs 775 per 10 grams over the week as the price of yellow metal continued to drop in the international market.
Currency
Rupee lost 8 paisa against the US dollar to close at 98.56 on Friday. Nepal Rastra Bank (NRB), the central regulatory bank, had opened currency trading on Sunday with the value of dollar fixed at Rs 98.48.
Though the value of rupee remained unchanged on Monday, it lost 7 paisa against US dollar on Tuesday to settle at 98.55. Rupee’s value remained constant on Wednesday. However, the local currency again lost nominal 1 paisa on Thursday to close at 98.56. The local currency’s value remained stable against the greenback on Friday to close the week’s trading at 98.56.
According to Reuters, rupee is unlikely to gain over the next year due to expectations that the Federal Reserve will raise interest rates by middle of next year, while the Chinese Yuan will probably rise. The rupee was trading at around 61.50 a dollar on Friday. But in a month’s time the rupee is likely to stand at 61.46 per dollar, according to the poll of 26 currency strategists conducted this week, said Reuters.
Meanwhile, rupee gained 39 paisa against Euro and 49 paisa against British Pound over the week. A Euro was exchanged at Rs 123.49 on Friday, while the British Pound was valued Rs 157.18.
Bullion
Gold price continued its free fall this week to as its price went down by Rs 775 per 10 grams over the week. The market opened on Sunday with gold price fixed at Rs 42,870 per 10 grams. On Monday, the yellow metal became cheaper by Rs 175 per 10 grams to Rs 42,695. Gold price continued to decline on further days as well. The yellow metal lost its shine by Rs 85 per 10 grams to Rs 42,610. Similarly, gold price went down by 85 per 10 grams on Wednesday to Rs 42,525.
On Thursday, price of the yellow metal came down by another Rs 430 per 10 grams to settle at Rs 42,095. Gold became cheaper nu Rs 85 per 10 grams to close the week’s trading at 42,010 on Friday.
Officials of the Federation of Nepal Gold and Silver Dealers’ Association have cited the decline in gold price to investors moving their investment towards share markets over gold. “US dollar has been strengthening because of which investment are flowing towards share markets,” Mani Ratna Shakya, president of the federation told Republica, adding “This has made gold cheaper.”
According to him, declining price of oil in the international market has equally contributed for the yellow metal to decline in price.
Similarly, price of silver came down by Rs 21.5 per 10 grams. On Friday, silver was traded at Rs 570 per 10 grams.
Source: Republica
