KATHMANDU, NEPAL
A unit of the US dollar will fetch Rs 90 as the appreciating dollar has crossed the 11-month highest against the Nepali rupee. The appreciation in the dollar exchange rate also helped the price of gold surge by Rs 1,150 per tola in the domestic market.
The reference dollar exchange rate determined by Nepal Rastra Bank (NRB) stands at Rs 90 as buying rate for tomorrow based on today’s forex trading. Likewise, NRB fixed the selling rate for the dollar at Rs 90.6 for tomorrow. The dollar exchange rate was this high back on June 29, 2012, at Rs 90.80. Since then the dollar had not reached this level.
As the Indian rupee (INR) — with which the Nepali currency (NPR) is pegged — dropped, hitting a 10-month low, NPR was taken along the plunge. According to Indian forex analysts, the Reserve Bank of India (RBI)’s governor’s remarks that dampened hopes regarding rate cuts worked against INR. RBI governor Duvvuri Subbarao had stressed that the Indian central bank was more concerned about containing inflation and current account gap.
Yesterday, NRB had fixed the reference dollar exchange rate at Rs 89.4 for buying and Rs 90.06 for selling. Commercial banks and money exchangers fix their own exchange rate based on their own dollar trading in the foreign exchange market.
The expensive dollar will inflate Nepal’s export and remittance receipts while it will make imports from third countries such as gadgets costlier. The domestic market saw the price of gold surge by Rs 1150 per tola due to the appreciation in the dollar exchange rate along with the improving price of the yellow metal in the international market.
Gold price reached Rs 52,350 per tola (11.664 grams) today here as it reached $1414 in the global bullion market. Gold was traded at Rs 51,200 per tola yesterday. Along with the increasing price of gold in the commodities market, the strong dollar also contributed to the surge in the price of the yellow metal here in the domestic market.
The exchange rate of the dollar has risen above Rs 90, making dollar denominated imported goods dearer in Nepal. The price of commodities such as that of gold and silver were continuously declining as the United States Federal Reserve is preparing to wrap up its bond buying programme — quantitative easing — soon. The improving US economy and statistics of better consumer confidence and absence of dreaded inflation has made the purchase of gold and silver — the most popular inflation hedge — unnecessary.
However, the latest data on the US economy being against expectations, and which showed less than the estimated expansion in the US economy in the first quarter and increased jobless claims, signalled that the US Fed is not in a position to scale down its asset purchase package in the near future. This has once again sparked the interest of investors in precious metals.
Meanwhile, in the domestic market, bullion traders are a bit relieved with the increased quota
of gold import to 20 kilo per day from the previous 15 kilo. General secretary of the Federation of Gold and Silver Traders Association Mani Ratna Shakya expressed that the additional five kilo has eased
the shortage in the market to an extent, but supply is yet to be smooth.
Source: The Himalayan Times, 1st June 2013
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A unit of the US dollar will fetch Rs 90 as the appreciating dollar has crossed the 11-month highest against the Nepali rupee. The appreciation in the dollar exchange rate also helped the price of gold surge by Rs 1,150 per tola in the domestic market.
The reference dollar exchange rate determined by Nepal Rastra Bank (NRB) stands at Rs 90 as buying rate for tomorrow based on today’s forex trading. Likewise, NRB fixed the selling rate for the dollar at Rs 90.6 for tomorrow. The dollar exchange rate was this high back on June 29, 2012, at Rs 90.80. Since then the dollar had not reached this level.
As the Indian rupee (INR) — with which the Nepali currency (NPR) is pegged — dropped, hitting a 10-month low, NPR was taken along the plunge. According to Indian forex analysts, the Reserve Bank of India (RBI)’s governor’s remarks that dampened hopes regarding rate cuts worked against INR. RBI governor Duvvuri Subbarao had stressed that the Indian central bank was more concerned about containing inflation and current account gap.
Yesterday, NRB had fixed the reference dollar exchange rate at Rs 89.4 for buying and Rs 90.06 for selling. Commercial banks and money exchangers fix their own exchange rate based on their own dollar trading in the foreign exchange market.
The expensive dollar will inflate Nepal’s export and remittance receipts while it will make imports from third countries such as gadgets costlier. The domestic market saw the price of gold surge by Rs 1150 per tola due to the appreciation in the dollar exchange rate along with the improving price of the yellow metal in the international market.
Gold price reached Rs 52,350 per tola (11.664 grams) today here as it reached $1414 in the global bullion market. Gold was traded at Rs 51,200 per tola yesterday. Along with the increasing price of gold in the commodities market, the strong dollar also contributed to the surge in the price of the yellow metal here in the domestic market.
The exchange rate of the dollar has risen above Rs 90, making dollar denominated imported goods dearer in Nepal. The price of commodities such as that of gold and silver were continuously declining as the United States Federal Reserve is preparing to wrap up its bond buying programme — quantitative easing — soon. The improving US economy and statistics of better consumer confidence and absence of dreaded inflation has made the purchase of gold and silver — the most popular inflation hedge — unnecessary.
However, the latest data on the US economy being against expectations, and which showed less than the estimated expansion in the US economy in the first quarter and increased jobless claims, signalled that the US Fed is not in a position to scale down its asset purchase package in the near future. This has once again sparked the interest of investors in precious metals.
Meanwhile, in the domestic market, bullion traders are a bit relieved with the increased quota
of gold import to 20 kilo per day from the previous 15 kilo. General secretary of the Federation of Gold and Silver Traders Association Mani Ratna Shakya expressed that the additional five kilo has eased
the shortage in the market to an extent, but supply is yet to be smooth.
Source: The Himalayan Times, 1st June 2013
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