Foreign exchange rates registered new lows against the rial in Tehran on Saturday. The US dollar dropped below the support level of 290,000-rial in the free market to buy 289,500 rials, losing 8,700 rials or more than 3% in one day.
The euro slipped 4.4% or 12,810 rials and was quoted at 290,420 rials. The GBP was down more than 5% to change hands for 342,240 rials while UAE dirham lost 3.5% to be tagged at 79,400 rials, Eqtesad News reported.
The descending order began almost 10 days ago spurred by positive reports about the likelihood of success in complex negotiations to revive Iran’s nuclear deal, known officially as Joint Comprehensive Plan of Action or JCPOA.
The talks had stalled since March, until the EU put forward a new initiative last week, making way for the return of negotiators to Vienna two weeks ago. Most parties involved in the meetings in Vienna have voiced rare optimism in rcent days about clinching a deal acceptable to all sides, Tehran and Washington in particular.
On Friday, sources with knowledge about the European proposal to revive the agreement between Iran and western countries told Al Jazeera Arabic that the deal is imminent and includes the release of billions of dollars in frozen Iranian funds and oil exports in return for the scaling back of its nuclear program.
The news triggered a new bout of selloff in the currency markets in Iran as dealers anticipate a strengthened rial if years of financial restrictions are removed on the economy.
As expected, the domestic gold market experienced huge losses in tandem with the plunge in currency rates. The popular Emami gold coin was traded as low as 13.06 million rials to post more than 4.8% decline or 63.2 million rials in one day.
The Half- Bahar Azadi coin fell 3.6% or 2.7 million rials to be traded at 75 million rials and one gram of 18-karat gold was worth 11.96 million rials, losing 6.5% on Saturday.
