Currency, Gold Retreat in Tehran After Weeklong Rally

Forex rates and gold prices dropped at the beginning of business week on Saturday bucking a rising trend that dominated the whole of last week.

Reaching the multi-month high of 307,000 rials as of Thursday, the US dollar retreated to 300,000 rials to pare more than 1.2% of the previous gains.

The greenback gained more than 8% against the rial during a wave of buying last week, spurred by rising inflation expectations.

However, it seems the market volatility has been tamed partially in light of positive developments and renewed hope of salvaging Iran’s troubled nuclear deal, formally known as the Joint Comprehensive Plan of Action.

EU foreign policy chief Josep Borrell said on Friday the stalled negotiations in Vienna over the 2015 nuclear agreement will resume soon, adding that he believed a final deal was within reach, AFP reported. But the Americans have expressed reservations about reaching a consensus to be able to restart the talks.