Forex rates and gold prices dropped at the beginning of business week on Saturday bucking a rising trend that dominated the whole of last week.
Reaching the multi-month high of 307,000 rials as of Thursday, the US dollar retreated to 300,000 rials to pare more than 1.2% of the previous gains.
The greenback gained more than 8% against the rial during a wave of buying last week, spurred by rising inflation expectations.
However, it seems the market volatility has been tamed partially in light of positive developments and renewed hope of salvaging Iran’s troubled nuclear deal, formally known as the Joint Comprehensive Plan of Action.
EU foreign policy chief Josep Borrell said on Friday the stalled negotiations in Vienna over the 2015 nuclear agreement will resume soon, adding that he believed a final deal was within reach, AFP reported. But the Americans have expressed reservations about reaching a consensus to be able to restart the talks.
Success of the difficult talks is expected to lift the rial, which has lost much of its value in the past year. Likewise, the US banking and financial sanctions are set to be lifted and billions of Iranian blocked foreign currency assets released.
As for other major currencies, the euro lost 1.2% on Saturday to close at 313,700 rials and the British pound sterling was down more than 1.2% to buy 371,000 rials. The biggest loser was the UAE dirham, falling to 82,100 rials or 2.4%.
In the regulated forex market, where currencies are traded wholesale, the greenback was tagged at 255,530 rials, down 0.15% on the session before.
This market is a CBI-affiliated spot market operated by a network of banks and certified moneychangers dealing in wholesale currency.
Currency prices in the exchange bureaus affiliated to the CBI also fell on Saturday. The Melli Exchange quoted the dollar at 256,680 rials, losing 0.2% from Thursday.
Prices in the domestic bullion market fell in tandem with the decline in forex rates.
The popular Emami gold coin retreated below the critical 140-million rials level and settled at 139.2 million rials for the day, losing more than 1.4% or 2 million rials.
Half Bahar Azadi coin lost 1.3% or 1 million rials to reach 77.95 million rials and one gram of 18-karat gold was sold at 13.52 million rials, losing 2.8% decline on the earlier session.
