The national currency gained ground and pared losses following further guarded optimism about reviving Iran’s nuclear deal, which curbed demand for foreign currency.
The US dollar fell below the psychological 30,000-rial on Wednesday to buy 298,500 rials in Tehran’s free market. It was 3,300 rials lower compared to the session before giving up more than 1.2%.
Likewise, the euro was worth 304,200 rials, down 1%, the GBP lost 0.5% to fetch 364,900 rials and the UAE dirham was traded at 81,900 rials, down 1% on Tuesday.
The decline in forex rates started last week after media reports and some officials in Tehran and Europe said the complex nuclear negotiations could produce results.
Negotiations to revive the nuclear deal, known as the Joint Comprehensive Plan of Action (JCPOA) were held in Vienna last week.
It appears that investors are increasingly betting on the much-expected success of the talks and a belated understanding between the parties to the original 2015 deal.
Observers say the national currency, rial, should rebound if the US banking and financial sanctions are removed as envisioned in the original deal.
Unlike the downturn in unofficial currency market, prices were almost unchanged in state-run exchange bureaus in retail and wholesale markets.
The Melli Exchange tagged the greenback at 280,720 rials. It was sold for 279,230 rials at the regulated forex market, where currency is traded wholesale by a network of authorized moneychangers.
Iran’s domestic gold market continued on the downward trajectory in tandem with lower currency prices. One Emami gold coin was quoted at 136.95 million rials on Wednesday, down 2.9% or 3.97 million rials on the previous session.
Half-Bahar Azadi coin lost 1.3% or 1 million rials to buy 77.5 million rials and one gram of 18-karat gold was worth 12.8 million rials, down 1.4% from Tuesday.
In international markets, gold extended losses to a third straight session Wednesday as the dollar and US Treasury yields firmed, while investors zoned in on the upcoming minutes from the US Federal Reserve’s July meeting.
Spot gold fell 0.5% to $1,767.59 per ounce and US gold futures eased 0.4% to $1,782.00.
