While currency market observers had expected a pause in the volatile currency market after a weeklong rally, forex rates continued to climb at the beginning of the trading week on Saturday.
The dollar advanced to 286,300 rials in Tehran’s unofficial market up 1% or 3,000 rials on Thursday. The American currency has been rising steadily gaining nearly 3.5% against the rial in two weeks.
The euro gained 0.6% or 2,160 rials to buy 286,490 rials while the UK pound sterling was up 0.86% and traded for 385,730 rials. The UAE dirham crossed 78,000 rials level and changed hands at 78,010 rials rising 0.8% daily, the Tehran Gold and Jewelry Union website said.
Prices at official exchange bureaus affiliated to the Central Bank of Iran gained less. Melli Exchange, affiliated to the state-owned Bank Melli Iran, tagged the dollar at 273,630 rials about 0.3% higher compared with a session before.
However, the greenback dropped in the wholesale market, known as the regulated market. Moneychangers in this market tagged the dollar at 275,840 rials, down 0.5% compared to Thursday.
Amir Abbas Mirzae’e, the managing director of the market, known officially as the Iran Currency Exchange, linked the decline in the wholesale market to “excessive supply and declining expectation of traders”, according to IRIB news website.
Gold prices rallied in tandem with the high forex rates. The popular Emami gold coin surged to 126.8 million rials, rising 1.35 million rials or more than 1% on Saturday.
The Half Bahar Azadi coin gained 0.4% and was worth 64.75 million rials while one gram of 18- karat gold bought 12.7 million rials, up 1.05% compared with the session before.
In international markets the precious metal slipped on Friday as investors locked in profits from a six-session long streak of gains, and an uptick in US bond yields cooled safe-haven inflow into the bullion driven by inflation worries, Reuters reported.
Spot gold fell 0.7% to $1,849.36 per ounce, after hitting a five-month peak on Wednesday. US gold futures dropped 0.7% to $1,851.00.
Highlight: Gold prices rallied in tandem with the high forex rates. The popular Emami gold coin surged to 126.8 million rials, rising 1.35 million rials or more than 1% on Saturday
