Currency prices shot up Wednesday in Tehran's open market with the US dollar at an all-time high.
The greenback was quoted at 344,400 rials on Wednesday, up 2.96% or 10,200 rials, Eghtesadnews website said.
In the official market operated by the CBI-affiliated exchange bureaus, the dollar was tagged at 290,400 rials -- up 0.06% on the session before.
It was traded at 288,860 rials in the regulated currency market, up 0.06% from the previous day’s close, the Iran Currency Exchange website reported..
The euro jumped 1.85% to buy 338,050 rials, while the Emirati dirham shot up 2% to 94,700 rials.
Some market observers said the sudden surge in forex rates is mostly because of an increase in demand. The widening gap between rates of bank-affiliated exchange shops and the open market led to long lines Wednesday in front of bank-affiliated exchange shops, local media outlets reported.
The rise in the UAE currency is also seen as a key factor driving the dollar. The former is said to be highly influential in the Iranian currency market.
Some analysts opine that the high and rising currency market is becoming a sort of destination for capital fleeing the troubled stock market in Tehran.
Eghtesadnews reported that the net capital outflow from the bourse in the month to Oct 22 reached 46 trillion rials ($140m) in 18 trading sessions.
Gold Jumps
Gold prices also shot up on Wednesday. The Emami gold coin was quoted at 160.4 million rials, up 2.64% on the day before.
Half Bahar Azadi coin rose 0.59% to buy 94.5 million rials, the Quarter Bahar Azadi coin gained 2.7% to finish at 5.55 million rials and one gram of 18-karat gold was traded at 14.06 million rials.
International gold prices also rose on Wednesday as the dollar weakened, but held to a tight range with investors reluctant to place big bets before the US Federal Reserve’s rate decision later in the day.
Spot gold rose 0.4% to $1,654.51 per ounce while US gold futures gained 0.5% to $1,657.40.
