Building on last week’s gains, foreign exchange rates rallied in Tehran at the start of the business week on Saturday pushing up prices in the domestic bullion market.
The dollar briefly touched the critical 260,000-rial level in the middle of the day in the open market before retreating. It closed at 259,800 rials, rising more than 2.6% or 6,900 rials.
Following the upsurge in the open market, the greenback jumped to 253,100 rials at the Melli Exchange, the state-run moneychanger affiliated to Bank Melli Iran. The price was 3% higher on the earlier session.
Other major currencies also advanced. The euro rose 2.4% or 7,340 rails to reach 305,210 rials, UK pound sterling gained more than 2.1% or 7,610 rials to buy 357,660 rials and the UAE dirham was 0.5% higher at 70,000 rials.
A combination of negative political developments is seen as the cause for the unanticipated volatility including the attack on the Israeli ship off the coast of Oman and concerns about the hitherto unresolved talks to restore Iran’s 2015 nuclear deal and lift the US economic blockade, the Persian-languge economic news website Eqtesad News reported.
US Secretary of State Antony Blinken has said the talks to revive the historic accord “cannot go on indefinitely”. In the same vein, Germany's Foreign Minister Heiko Maas has said that a revival of the nuclear agreement with world powers won't be possible “forever," AP reported, citing a German magazine.
Negotiations in Vienna have been suspended ahead of the inauguration of the newly-elected President Ebrahim Raisi this week.
Forex rates also rose sharply in the regulated currency market where the dollar was quoted 252,400 rials, 2.8% higher compared to the previous session.
The regulated forex market is a network of banks and certified moneychangers working under CBI supervision dealing in wholesale forex trade.
Gold Shines
Gold prices also surged keeping abreast with trends in the currency market. The popular Emami gold coin gained 3.1% or 3.6 million rials to be traded at 115.2 million rials.
One Half Bahar Azadi coin was up 0.5% or 300,000 rials to be worth 59 million rials and one gram of 18-karat gold fetched 11.13 million rials, 1.6% or 173,000 rials higher on the last session on Wednesday, according to the TGJU website.
In international markets, gold prices eased on Friday, with a firmer dollar curtailing the precious metal’s brief rally spurred by US Federal Reserve Chair Jerome Powell’s reassurance that a rate hike was not on the cards for the time being, Reuters reported.
Spot gold slipped 0.8% to $1,814.00 per ounce by 1:48 pm EDT. US gold futures settled 1% down at $1,817.20. The precious metal hit a two-week peak on Thursday. It was also on track for a weekly gain.
Highlight: A combination of negative political developments is seen as the cause for the unanticipated volatility including the attack on the Israeli ship off the coast of Oman and concerns about the hitherto unresolved talks to restore Iran’s 2015 nuclear deal and lift the US economic blockade
Caption: Forex rates also rose sharply in the regulated currency market.
