After a brief hiatus on Monday, forex rates climbed again on Tuesday in Tehran’s unofficial market.
The US dollar drew closer to 320,000 rials at midday and was traded at 319,500 rials, more than 1.3% or 4,200 rials higher on the session before.
The greenback hit an historic high of 322,000 rials in October 2020 and seems poised to repeat the crushing record. Referring to past patterns, market experts say the American currency could soar after breaking past the historic resistance level.
Other major currencies also gained. The euro was worth 342,300 rials, up more than 0.7% on the previous session, the GBP settled at 402,800 rials, 3,300 or 0.83% higher on Monday and the UAE dirham moved up 1.16% to buy 87,500 rials.
The spike in currency rates comes amid renewed efforts by the Central Bank of Iran and its affiliated exchange bureaus to control volatility.
Last Thursday, the High Council of Economic Coordination, ad hoc decision-making body comprising heads of the three branches of power, gave the CBI more power to restore calm to the chaotic currency market – a tall order most experts say.
The CBI Governor Ali Salehabadi has said that the central bank will boost the supply side. How and when is not known.
Official exchange shops increased prices for the second day to narrow the difference with the unofficial market.
The greenback was tagged at 267,000 rials in the regulated forex market at 18:00 local time, indicating 2.11% rise from the session before.
The market is a CBI-affiliated spot market operated by a network of banks and certified moneychangers dealing in wholesale currency.
Prices in exchange bureaus affiliated to the CBI rose with the dollar at the Melli Exchange quoted at 265,210 rials, 1.3% higher from Monday.
Gold prices in the domestic market also rose. The Emami gold coin stood above the critical 150 million rials to close at 151 million rials, up 0.7% on the day ago.
Half Bahar Azadi coin fell 0.24% to the day and was worth 85.3million rials while one gram of 18-karat gold was sold at 14.39 million rials, rising 0.71% in the day.
In international markets, gold held near one-week lows on Tuesday as investors wagered that aggressive tightening plans by major central banks are going to keep interest rates higher for an extended time, boosting the US Treasury yields and in turn the dollar, Reuters reported.
Spot gold was flat at $1,840.16 per ounce. Earlier in the session, bullion slipped to $1,836.10, its lowest since June 1. US gold futures also eased 0.1% to $1,842.30.
