Despite recording a sharp fall for the first three days, Nepali rupee’s foreign exchange rate has made a recovery over the last few trading days, causing rupee to strengthen against US dollar over this week, as the demand for greenback slid in India with which currency Rupee is pegged.
Price volatility continued to rock bullion market, however, by Friday gold became cheaper as compared to prices recorded on Sunday.
Nepali rupee strengthened by 51 paisa against a US dollar over the week, after tumbling sharply over the past two weeks. This made imports cost go down, but also lowered income of exporters and remittances receivers. On Friday, a dollar was valued at Rs 78.60.
Nepal Rastra Bank (NRB), the country´s monetary authority had set the exchange rate of dollar at Rs 79.11 when the market opened this week on Sunday.
As investors in India continued to pull out their money to invest in safer assets, rupee shed 29 paisa overnight on Monday and further fell down by 18 paisa on Tuesday. However, the trend reversed fast, with rupee enjoying a rebound of 70 paisa on Wednesday.
Rupee further gained 2 paisa compared to previous day on Thursday and strengthened further by 26 paisa when the market closed on Friday.
Similarly, rupee gained 12 paisa against a euro, but shed 74 paisa against a pound sterling. A euro was exchanged at Rs 106.91, while a pound sterling was valued at Rs 122.76 on Friday.