Various international media outlets have reported that many foreign investors have withdrawn their investments in India. This is why the Indian rupee has weakened and the dollar has strengthened. As the Indian rupee has weakened, the Nepali currency has also automatically weakened.
We use Google Cloud Translation Services. Google requires we provide the following disclaimer relating to use of this service:
This service may contain translations powered by Google. Google disclaims all warranties related to the translations, expressed or implied, including any warranties of accuracy, reliability, and any implied warranties of merchantability, fitness for a particular purpose, and noninfringement.
As the value of the US dollar has increased, the price of gold in Nepal has started to fall. And, in a single day, it has decreased by 11,000 rupees per tola. The price of gold, which has been increasing for the last few days, has decreased on Wednesday. As the dollar has strengthened against the Indian rupee, the Nepalese rupee, which has a stable exchange rate, has automatically weakened.
The US dollar has been continuously strengthening against the Indian rupee in recent months. As of Wednesday evening, the exchange rate of one US dollar has reached 92 rupees. This is the highest ever. Especially after the problems in trade with the US, the Indian rupee has been continuously weakening. Various international media outlets have reported that many foreign investors have withdrawn their investments in India. This is why the Indian rupee has weakened and the dollar has strengthened. As the Indian rupee has weakened, the Nepalese currency has also automatically weakened.
The dollar has also strengthened in the global market, while the price of gold has decreased. Currently, the price of gold in the global market is decreasing and the Indian rupee is also weakening. This combined effect has also had an impact on the Nepali gold market.
The price of gold in the Nepali market, which was Rs 320,500 per tola on Sunday, increased to Rs 326,100 on Monday. On Tuesday, the price of gold increased by Rs 2,500 per tola to Rs 328,600. On Wednesday, the price of gold fell by Rs 11,000 to Rs 317,600 per tola, according to the Nepal Gold and Silver Dealers Federation. The price of gold fell as the value of the dollar started to rise, said Kiran Bajracharya, general secretary of the federation. “As the price started to rise, international central banks started investing in dollars, which led to a decline in the price of gold in the international market,” he said.
As the war between Iran and Israel continues to create tension in West Asia, the price of crude oil has also started to rise. Investors have also started investing in crude oil and the demand for gold in the local market has decreased, Bajracharya said. ‘The price of gold will not fall by that much, it may reach around 300,000 per tola,’ he said, ‘it will not fall to 200,000 per tola, 250,000 per tola.’ As of Wednesday evening, gold is being traded at $5,184 per ounce in the international market.
Gold is imported into Nepal only from the UAE. According to the Customs Department, gold jewelry is imported from Qatar and other countries. In the seven months of the current fiscal year, gold, silver and copper wire worth Rs 37.6 billion have been imported from the UAE. Including other items, Rs 41 billion has been imported from the UAE in the seven months.
Although gold and silver are brought from the UAE by air, only emergency flights have started till Wednesday. Experts say that if the air route remains closed for a long time, the import of gold will also be stopped. Other items imported from the Gulf countries come through the ‘Strait of Hormuz’ waterway.
‘Strait of Hormuz’ is a waterway between Iran and Oman. It connects the Gulf to the Arabian Sea. Tankers carrying 20 percent of the world's total oil consumption also use this route, as do cargo from producers such as Saudi Arabia, Iraq, Iran, the UAE, Kuwait, and Qatar. The Strait of Hormuz waterway is largely closed due to the Iran-Israel war. Therefore, the aforementioned countries have started looking for alternative options for crude oil.
Meanwhile, on Wednesday, Russian Deputy Prime Minister Alexander Novak said that he was ready to increase oil supplies to China and India. Amid rising tensions in the Strait of Hormuz, Novak said that Russia's proposal could also act as a potential buffer in supplies, according to the Interfax news agency.
US President Donald Trump said on Tuesday that he was ready to provide security (escort) for oil tankers passing through the Strait of Hormuz. In response, Iran's Islamic Revolutionary Guard Corps on Wednesday claimed to have full control over the Strait of Hormuz, a vital strategic route for global oil and gas shipments. "The Strait of Hormuz is now under full control. Ships traveling through the route may face various risks, including missiles or uncontrolled drones," Guards Navy officer Mohammad Akbarzadeh told the Fars News Agency.
India's Economic Times reported that 2.5 to 2.7 million barrels of crude oil imports pass through the Strait of Hormuz every day. Oil imported mainly from Iraq, Saudi Arabia, the UAE and Kuwait also passes through the Strait of Hormuz. Indian refineries are looking for alternative sources after military attacks in the region disrupted cargo shipments. Indian government agencies also claim that India has sufficient oil reserves to handle any short-term disruptions that may arise due to conflicts in West Asia.
Oil prices rose only 1 percent in early trading on Wednesday, when they were expected to reach $100 per barrel. Reuters reported that the price increase has slowed somewhat compared to the previous day after US President Trump said that the US Navy could provide security for shipping through the Strait of Hormuz. On Tuesday, the price of crude oil reached $82 per barrel. Which is the highest since January 2025. As of Wednesday evening, it was trading at $80 per barrel.
Meanwhile, Iraq, the second largest crude oil producer in the Organization of the Petroleum Exporting Countries (OPEC), has cut its production by 1.5 million barrels per day. Which is said to be about half of its total production. It is said that the production cut was due to storage limits and a lack of export routes. If exports do not resume, Iraq may have to stop producing about 3 million barrels per day within a few days, Reuters reported.
Iran has also targeted tankers in the Strait of Hormuz, through which about a fifth of the world's oil and liquefied natural gas passes. Traffic through the waterway is now effectively closed.
