Business And Markets

Forex Continues Its Ascent

Forex Continues Its Ascent
Forex Continues Its Ascent

After a short hiatus a session earlier, forex rates bounced back on Tuesday spurred mainly be political developments.
The dollar moved above 240,000 rials and was quoted as high as 241,500 rials in Tehran’s open market or 1.8% higher. On Monday it was worth 237,500 rials.
The UK pound sterling was quoted at 341,590 to post 1.4% gain, one euro was worth 293,600 rials up 1.36% and the UAE dirham bought 66,400 rials up more than 1% or 700 rials compared to the earlier session.
Market observers link the new upsurge to statements by Abbas Araqchi, the deputy foreign minister and chief negotiator at the ongoing Iran nuclear talks in Vienna with the world powers.
Briefing reporters on the marathon talks, Araqchi said more time would be needed to clinch a deal. “Personally, I am not certain the talks will conclude in this round,” ISNA quoted him as saying.
According to Eqtesad News website, the rather unanticipated statements were construed by currency dealers and speculators as a sign that the difficult talks may not end in the near future and stalemate is possible.
“We have been negotiating [the latest round] for a week. The talks are intricate and we have reached the main areas of disagreement,” Araqchi said.  
Iran and the world powers have been negotiating since early April on lifting the US economic blockade and restoring the nuclear deal, known as the Joint Comprehensive Plan of Action.
Donald Trump pulled out of the accord in 2018 and imposed new sanctions to which Tehran responded by scaling down its JCPOA commitments.
Despite rising in the open market, the greenback declined slightly in the certified exchange bureaus affiliated to the Central Bank of Iran. The moneychangers sold the dollar for 234,090 rials, down 0.25% compared to the day earlier.
Higher currency value pushed up rates in the domestic bullion market. The Emami gold coin was up 1.7% to fetch 108.3 million rials. Half Bahar Azadi coin climbed 1% to reach 60.1 million rials and one gram of 18-karat gold was worth 10. 98 million rials, up 1.73%, the Tehran Gold and Jewelry Union website said.  
Gold steadied near a 5-month peak on Tuesday in international markets buoyed by a subdued dollar as focus turned to key US economic data due later this week, according to Reuters.
Spot gold was up 0.05% at $1,908.81 per ounce having earlier touched its highest since Jan. 8 at $1,916.4. US gold futures were up 0.3% at $1,911.70.
Gold, considered a hedge against inflation that could be triggered by widespread money printing by central banks to aid economic revival, recorded its best month of the year in May, supported in part by concerns about inflation.


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