Dollar loses against Rupee, Gold price falls

KATHMANDU, Jan 12: 

Nepali rupee strengthened for the third straight week against the US dollar this week as the Indian currency, with which Nepali rupee is pegged, gained due to dumping of US dollars by Indian exporters and rise in flow of overseas funds in Indian stocks.

Despite mid-week rise in US dollar against Nepali currency, Nepali rupee strengthened by 25 paisa against the dollar over the week.

Gold, on the other hand, slid on the last two trading days of the week in the domestic market with the price down by Rs 155 per 10 gram over the week.

Currency

Nepali Rupee rose by Rs 0.25 against the dollar over the week. This helped import cost to go down but also lowered export and remittance receipts.

Nepali rupee opened at Rs 88.05 against the dollar for the week on Sunday. As inflow of dollar slightly decreased, Nepali rupee weakened by 35 paisa on Monday. The Nepali currency shed another 10 paisa on Tuesday and three paisa on Wednesday. However, Nepali currency gained 49 paisa on Thursday due to strengthening of Indian currency on the back of dumping of US dollars by Indian exporters and rise in flow of overseas funds in Indian stocks. Nepali currency gained another 24 paisa on Friday, the final trading day of the week.

Likewise, Nepali rupee gained Rs 24 paisa against the euro over the week to close at Rs 114.72 on Friday. Nepali rupee also gained 72 paisa against the pound sterling during the week to end at Rs 140.66 on Friday.

Bullion

Despite rise seen in initial days of the week, gold surrendered Rs 155 per ten grams over the week. The yellow metal closed for the week at Rs 50,000 per 10 grams on Friday.

Bullion trading opened this week with gold price fixed at Rs 50,155 per 10 grams on Sunday. The price of the yellow metal continued to rise and reached Rs 50,240 on Wednesday, before taking dips on Thursday and Friday.

Meanwhile, the price of silver went up by Rs 13 per 10 grams in the domestic market this week. Silver was traded at Rs 947.50 per 10 grams on Friday.

Source: Republica

Dollar 5 month low against Rupee.

KATHMANDU, Oct 3, 2012

Nepali rupee has reclaimed Rs 7.74 against a US dollar, enjoying gain of well over 8 percent over the last three-and-a-half month, as India´s commitment to stick to fiscal reforms and improvement on global risk sentiment helped it rally against the greenback.

Such assessment was made after Nepal Rastra Bank (NRB) on Tuesday announced that rupee will value at 84.14 against a USD when trading opens on Wednesday. The exchange rate of USD had hit a record high of Rs 91.88 on June 23, 2012.

Though currency trading in India remained closed on Tuesday due to public holiday, officials of Foreign Exchange Dealers Association of Nepal (FEDAN) said the exchange rate of USD for Wednesday was lowered taking Monday´s closing rates in India into consideration.
“When we set the rate for Monday, the market in India was still open. Hence, it had not reflected the closing figures,” said an official of FEDAN. “Now, Wednesday´s rate will reflect the final rates.”

With the gain announced for Wednesday, rupee has hit almost five-and-a-half month high against the USD. Rupee was valued Rs 83.59 per USD on April 24, 2012.

The gain by rupee, which can be attributed to its peg with the Indian Currency (IC), has brought cheers to the importers as it lowers their import costs. As this benefit is expected to be eventually transferred in the market, consumers that so long braved the brunt of sharp devaluation of rupee too can afford to heave some sigh of relief.

It has also brought some respite to the government for it can now service the foreign debt by spending relatively lesser rupee.
However, the gain of rupee will badly impact remittance receivers as it will drag down their actual receipts prior to the Dashain festival. This clearly means, families of some 2 million Nepali workers, who send back additional money to enable their dear ones enjoy the festival in a grand way, will be hurt, said an NRB official.

Source: Republica

Global IME and ABC banks pact

KATHMANDU, AUG 16, 2012

Global IME Bank entered into an agreement with Agriculture Bank of China (ABC) that has 31,000 branches throughout China, to open Chinese yuan and US dollar accounts to facilitate trade between Nepal and China. The memorandum of understanding regarding the opening of the accounts that allows Nepali business people to do transactions of drafts and TT in dollar/yuan, was signed by Global IME Bank’s deputy chief executive Janak Sharma Poudel and ABC’s vice president - international trade Suping Thongh amid a function at Zhangmu, Tibet to facilitate trade at the Nepal-China Tatopani customs.

Source: THT

American Dollar Highest against NC

Rupee plunges to all-time low against US dollar

KATHMANDU, MAY 18, 2012


The Nepali rupee touched the lowest level against US dollar on Friday as the central bank determined the selling price of per dollar at Rs 87.40 surpassing 86.39 — much lower than the previous record of Rs 86.37 on Dec 16, 2011.

The fall of the rupee against the dollar is mainly due to the sharp devaluation of the Indian currency, with which the domestic currency is pegged. The Indian currency touched  its record low value against the dollar on Friday and so, the NRB fixed the record low value of domestic currency against the dollar.

A senior NRB official said that there is a little chance of deviation while fixing value of the Nepali currency against dollar compared to the Indian currency value against the greenback. “We determine the value of Nepali currency against dollar on the basis of the value of Indian currency at around 11am every day,” said the central bank official. “That’s why there remains a little chance of marginal deviation.”

The partially convertible Indian rupee fell to a record low of 54.60 against a dollar in the intra-day, surpassing Wednesday's low of 54.52. Indian media have blamed  worsening global risk environment and concerns about India’s fiscal and economic challenges for the weakening Indian currency.

But Indians living abroad are rushing to send money home as they see an opportunity to get more value of their foreign cash get higher return in their homeland. some Indians working abroad say their relatives will receive a bigger amount of rupees for the same usual amount that they transfer regularly.

NRB officials say that the depreciation of domestic currency is good for the export but it will increase the cost of third-country imports as more domestic currency is required to support import bills. Importers are also hesitant to make decision on import due to strengthening of the dollar against the Nepali currency.

An importer dealing with electronics said that he is facing difficulty making a decision as importing electronics at high cost may not be wise given the intense competition in the market. “Those who have stocks of materials imported at cheaper rate may attract more customers while those paying high have to suffer,” said the trader.

With imports from third countries accounting for around 33 percent of the total imports, the economy may face inflationary pressure. Nepal imported goods worth Rs 261.63 billion from India in the last fiscal, while those from third countries stood at Rs 133.27 billion. As Nepali industries import raw materials from India by paying US dollars, they will have to bear additional burden.

However, the rising number of migrant workers are likely to send more remittance when the Nepali currency is weak.

The weakening rupee also means the Nepal Electricity Authority will have to pay more for electricity from Bhotekeshi and Khimti hydropower projects, both of whom have power purchase agreements in dollars. Nepal will also have to pay more while repaying its external loans.

Source: The Kathmandu Post

Rupee plunges to all-time low against US dollar

The Nepali rupee touched the lowest level against US dollar on Tuesday as the central bank determined the selling price of per dollar at Rs 86.39—two paisa lower than the previous record of Rs 86.37 on Dec 16, 2011.

The fall of the rupee against the dollar is mainly due to the sharp devaluation of the Indian currency, with which the domestic currency is pegged. Although the Indian currency almost touched a little less than its record low value against the dollar, the NRB fixed the record low value of domestic currency against the dollar.

A senior NRB official said that there is a little chance of deviation while fixing value of the Nepali currency against dollar compared to the Indian currency value against the greenback. “We determine the value of Nepali currency against dollar on the basis of the value of Indian currenty at around 11am every day,” said the central bank official. “That’s why there remains a little chance of marginal deviation.”

Indian currency had reached as low as IRs 54.15 against a US dollar on Tuesday morning, which is the second lowest since the Indian currency plummeted to a record low at IRs 54.30. Indian media have blamed  worsening global risk environment and concerns about India’s fiscal and economic challenges for the weakening Indian currency.

NRB officials say that the depreciation of domestic currency is good for the export but it will increase the cost of third-country imports as more domestic currency is required to support import bills. Importers are also hesitant to make decision on import due to strengthening of the dollar against the Nepali currency.

An importer dealing with electronics said that he is facing difficulty making a decision as importing electronics at high cost may not be wise given the intense competition in the market. “Those who have stocks of materials imported at cheaper rate may attract more customers while those paying high have to suffer,” said the trader.

With imports from third countries accounting for around 33 percent of the total imports, the economy may face inflationary pressure. Nepal imported goods worth Rs 261.63 billion from India in the last fiscal, while those from third countries stood at Rs 133.27 billion. As Nepali industries import raw materials from India by paying US dollars, they will have to bear additional burden.

However, the rising number of migrant workers are likely to send more remittance when the Nepali currency is weak.

The weakening rupee also means the Nepal Electricity Authority will have to pay more for electricity from Bhotekeshi and Khimti hydropower projects, both of whom have power purchase agreements in dollars. Nepal will also have to pay more while repaying its external loans.

Source: The Kathmandu Post

Forex 3 month high against the US dollar

Rupee hits three month high against dollar

KATHMANDU, FEB 03, 2012

Nepal Rastra Bank (NRB) has fixed the exchange rate for the US dollar at Rs 78.76 for Friday marking a three-month high for the Nepali rupee. The rupee had dropped to a historic low of Rs 86.37 on Dec 16.

Nepali currency is pegged with Indian currency, and the Nepali rupee has risen along with the appreciation of the Indian rupee. The Indian rupee rose on strong inflows of the US dollar and recovery in India’s capital market that was once plagued by outflows.

Statistics from the Securities and Exchange Board of India show that overseas investors have bought Indian stocks worth US$ 2.1 billion so far this year and invested US$ 3.2 billion in debt instruments, according to Indian media.

Earlier, foreign investors had lost confidence in the Indian market as the projected annual growth rate of the Indian economy at 8 percent was revised to 7.5 percent. Various Indian media quoting different players from the private sector had also reported chances of the rate going below 7 percent.

This led foreign investors to pull back their investments from the Indian market, and the market saw high demand for the greenback raising its value sharply.

The Reserve Bank of India (RBI) also played a crucial role in bringing down the exchange rate. The RBI imposed a limit on buying and selling of the US dollar and even injected dollars indirectly into the market.

NRB spokesperson Bhasker Mani Gnawali attributed the appreciation of Indian currency to a fall in demand for the dollar in Mumbai’s money market. “Quick fluctuation in the exchange rate does not last very long,” said Gnawali.

A weaker dollar is good news for Nepali importers as prices of goods imported from third countries, including vehicles and IT related goods, will fall, stimulating their demand.

On the negative side, a strong dollar was instrumental in boosting remittance inflow, which will fall slightly at the current rate.

“However, as remittance has also grown in terms of dollars, it will not go down that notably,” said Sashin Joshi, CEO of NIC Bank.

Source: Kantipur