Forex rates in Tehran retreated at the end of trading week on Thursday after gains in the middle of the week.
The US dollar closed at 264,500 rials in the free market, down 1.8% or 5,000 rials compared with a session before. It had surged above the critical 270,000-rial level in the middle of the week on Monday closing at 272,600 rials.
Currency rates have been of the descending order over the past two months apparently due to the guarded optimism about the success of talks to revive Iran’s nuclear deal.
Analysis by the Persian-language economic newspaper Donya-e-Eqtesad show the greenback has lost more than 10.5% against the rial since Dec. 22 when the greenback was quoted at around 305,000 rials.
Experts say if and when the complex negotiations in Vienna produce the desired results the rial, which has lost much of its value, would rebound subject to the easing of tough banking and financial sanctions imposed by the US under former president Donald Trump.
In addition, a potential deal would enable Iran to access billions in forex assets blocked in overseas banks due to the US restrictions.
Other major currencies also fell on Thursday. The euro lost more than 1.7% % to fetch 302,070 rials. The UK pound sterling was tagged at 361,610 rials, indicating 1.32% decline compared to the session before. The UAE dirham lost more than 1.4% or 1,000 rials to buy 72,200 rials.
Currencies registered smaller decline in the official market. The dollar was worth 252,330 rials on Thursday at the official exchange bureaus affiliated to the Central Bank of Iran, down nearly 0.3%.
The greenback shed 0.12% in the wholesale currency market known as the regulated foreign exchange market and was quoted at 251,070 rials. This market is a CBI-affiliated spot market operated by a network of banks and certified moneychangers dealing in wholesale currency.
The domestic bullion market incurred relatively smaller losses as it is also influence by trends in international markets. The popular Emami Gold coin was worth 11.95 million rials, down almost 1%. Half Bahar Azadi coin closed 0.8% lower to reach 67 million rials.
In international markers gold on Thursday rose above $1,900 for the first time since June as investors flocked to the safety of bullion after reports of an imminent Russian invasion of Ukraine. Spot gold jumped 1.7% to $1,899.84 per ounce.
Gold retreated slightly from a key $1,900 level on Friday as a potential Russia-US meeting cooled some nerves about an escalation in the Ukraine conflict Reuters said. Spot gold was down 0.3% at $1,892.27 per ounce.
