Forex rates in the unofficial market dropped on Wednesday dragging down prices in the domestic bullion market.
The US dollar was quoted at 311,140 rials, down 5,500 rials or 1.9% in Tehran’s free market. The euro was down more than 1.8% to settle at 318,870 rials while the UAE dirham bought 86,100 rials – down 1.05% on Tuesday, Eqtesad News website reported.
While the currency market has been relatively stable for weeks, observers link the fresh decline to cautious optimism about the reviving Iran’s nuclear deal, known as Joint Comprehensive Plan of Action, or the JCPOA.
Negotiations have been held at irregular intervals mostly in Vienna for over a year to thrash out a way Iran and the world powers can agree and resume compliance. The difficult talks had been stalled since March, until the EU put forward a new initiative last week, paving the way for the return of negotiators to the Austrian capital.
Revival of the 2015 nuclear deal is expected to strengthen the rial, which has lost much of its value over the past three years. If and when an agreement is reached the tough US banking and financial sanctions would be lifted and billions in Iran’s blocked assets released.
As expected, the domestic gold market was affected downwards by the currency market on Wednesday despite increase in precious metal prices in international markets.
The Emami gold coin lost almost 1% % or 1.42 million rials to buy 147.56 million rials. Half-Bahar Azadi Coin lost 0.25% or 200,000 rials to change hands at 81.8 million rials and one gram of 18-karat gold was worth 13.57 million rials -- down 1.1% on the previous session.
Spot gold added 0.2% to $1,796.84 an ounce on Wednesday in international markets.
