Business And Markets

Rial Slips After 1-Month Resilience

Rial Slips After 1-Month Resilience
Rial Slips After 1-Month Resilience

After almost a month of relative stability, foreign exchange rates jumped Wednesday in Tehran’s open market.
The dollar crossed the psychological 280,000-rial level gaining 2% or 6,000 rials, closing at 282,000 rials. The last time the greenback was traded at this rate was on August 28.  Since then the American currency vacillated between 272,000-278,000 rials.
The euro surged to 328,110 rials, rising 1.2% or 3,860 rials while the UK pound sterling rose 0.35% to buy 382,220 rials. The UAE dirham was 2.1% or 1,550 rials higher at 76,900 rials.
Observers say the fresh volatility in the currency market is triggered by political developments as speculators usually make use of (abuse) the negative atmosphere to gouge prices, the Persian-language website Eqtesad News said.
Rising expectations in the forex market this time around is linked to a statement by the International Atomic Energy Agency in which the watchdog criticized Iran for banning IAEA’s access to some nuclear sites, according to media reports.

Investors also don’t expect any significant progress in the stalled international negotiations to revive Iran’s nuclear deal.
Following the upsurge in the open market, official exchange bureaus affiliated to the Central Bank of Iran pushed up rates on Wednesday. The dollar was tagged at 271,440 rials at the state-run Melli Exchange, affiliated to Bank Melli Iran -- 1,980 rials or more than 0.7% higher compared to the earlier session.  
The greenback was traded higher in the wholesale market, the regulated forex market, where it gained close to 1.6% to fetch 276,330 rials.   
Gold in Tehran was mixed as spike in the currency market and decline in international gold prices were two opposing forces impacting the bullion market.
The popular Emami gold coin declined slightly by 0.17% or 200,000 rials to fetch 118.66 million rials.  Half Bahar Azadi coin climbed over 0.8% to reach 605 million rials and one gram of 18-karat gold was worth 11.58 million rials, up more than 1%, according to Tehran Gold and Jewelry Union website.  
In global markets gold fell on Wednesday as the dollar rose and on growing confidence that the US Federal Reserve would soon begin winding down its economic support measures, news outlets said.
Spot gold fell 0.3% to $1,728.20 per ounce by 10:27 a.m. ET (1427 GMT) and US gold futures were down 0.4% at $1,730.00. Gold fell to a one-and-a-half month low on Tuesday.


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