The price of US dollar and other major foreign currencies declined in Tehran’s market on Friday, after posting stability in the past week.
The dollar lost more than 1.14% against the rial and was quoted at 260,000 rials in Tehran’s open market, almost 3,000 rials lower compared with the previous session.
Other major currencies also fell. The euro lost 3% to fetch 286,790 rials, finishing the week at 290,870 rials, according to Esghtesadnews.com.
The UAE dirham also posted a drop in value in Friday’s unofficial trade session and was traded at 70,900 rials.
Iran’s currency market is highly sensitive to political developments, with all eyes on the fate of the landmark 2015 nuclear deal that the US abandoned in 2018 and imposed tough economic sanctions on Tehran to force it to agree to a new agreement on Washington’s terms.
The decline in forex rates comes after reports on Saturday that the United States has restored sanctions waiver related to Iran’s nuclear activity, a positive sign that the critical nuclear talks have entered the final stretch.
Experts say if there is a deal, the rial, which has lost much of its value over the past year, would rebound after banking and financial sanctions are lifted, as envisioned in the original agreement between Iran and the five permanent members of the UN Security Council (the US, France, the UK, China and Russia) plus Germany.
Under the impact of the declining forex rates, gold prices also fell. The Emami gold coin lost 1.21% and was traded at 119 million rials.
The Half Bahar Azadi coin was worth 68.2 million rials, posting a 0.5% decline during the day. The Quarter Bahar Azadi coin remained unchanged during the day and was priced at 37.7 million rials.
In international markets, according to Reuters, gold rose on Friday, eying its best weekly gain since May 2021, as investors scrambled for safe-haven assets after Russia attacked a nuclear power plant in Ukraine — the largest of its kind in Europe
Spot gold rose 0.6% to $1,946.41 per ounce and was on track for a weekly gain of about 3%. US gold futures also rose 0.6% to $1,948.60.
Although gold is considered a safe investment during political and economic uncertainty, rising US interest rates increase the opportunity cost of holding non-interest bearing bullion.
