Currencies pulled back against the rial on Monday in Tehran’s market though some of the losses were pared later.
The dollar briefly fell below the psychological 270,000 rials in the early hours of trade and was traded more than 2% lower. The greenback crept back later to 271,000 rials, closing the session 1.5% or 4,000 lower.
The euro was the biggest loser and plunged 2.5% or 7,980 rials to fetch 317,550 rials and the UK pound sterling lost close to 2.3% or 8,460 rials to buy 372,520 rials. The UAE dirham logged the smallest loss and was tagged at 7,470 rials, down 0.7% compared to Sunday.
Market observers see political factors in the downswing. They say the visit of the director general of the International Atomic Energy Agency, Rafael Grossi, to Tehran eased rising expectations in the market.
Head of the UN nuclear watchdog was in Tehran on Sunday and met the new head of the Atomic Energy Organization of Iran, Mohammad Eslami. Later he described his talks as “positive”, saying it can pave the way for meaningful interaction between the two sides.
The greenback was down more than 1.4% at the official exchange bureaus affiliated to the Central Bank of Iran where it was sold at 259,300 rials.
According to Eqtesad News website, the regulator has increased currency offers in the market to tame the rising prices. The website said the CBI offered $8.75 million in the regulated market on Sunday, which was 50% higher than the six-month average.
The dollar was traded at 263,130 trials in the regulated market, posting more than 0.7% decline or 1,880 rials compared to Sunday.
Regulated market is a network of banks and certified moneychangers working under CBI supervision dealing in wholesale trade.
As is normally the case, the downturn in the currency market extended to gold prices. The popular Emami gold coin lost 1.9 million rials or 1.6% to be traded at 119 million rials. Half Bahar Azadi coin dipped 0.84% or 500,000 rials to buy 60 million rials and one gram of 18-karat gold was worth 11.55 million rials, down 0.2% compared to the session before.
Bullion prices surged in international markets. Spot gold rose 0.1% to $1,788.51 per ounce on Monday while US gold futures fell 0.1% to $1,790.00.
