Forex rates opened trading week Saturday higher amid increasing uncertainty about the future of the market. Gold followed suit.
The US dollar briefly inched above the critical 300-000-rials in the middle of the day in Tehran’s unofficial market but did not advance above the important psychological level.
The American currency closed at 300,200 rials, up 0.5% or 1,600 rials. The UAE dirham climbed close to 1.1% while the euro and pound sterling posted slight losses.
Europe’s single currency lost 0.4% in the free market to buy 297,840 rials and the GBP fell 0.2% to settle at 344,410 rials, Eqtesad News reported.
Observers link the spike in currency prices to the ambiguity that may impact the chaotic market given the unclear fate and future of the seemingly unending international talks to revive Iran’s nuclear deal.
In mid-August, positive reports about the likelihood of success in the negotiations to revive the nuclear deal, known officially as Joint Comprehensive Plan of Action or JCPOA, spurred a sell-off in the currency market and caused the national currency to pare some previous losses.
The talks had been stalled since March, until the EU put forward a new initiative in early August, paving the way for the return of negotiators to Vienna. Yet again, no clear signals have come out from the Austrian capital or from the several parties to the critical talks.
The greenback surged more than 0.3% in the official market operated by authorized moneychangers and was traded at 286,420 rials.
As expected, the domestic gold market surges in tandem with the currency market. The popular Emami gold coin was traded at 13.93 million rials -- up more than 2% or 2.83 million rials in one day.
The Half- Bahar Azadi coin gained 0.37% or 300,000 rials to be traded at 79.8 million rials and one gram of 18-karat gold was worth 12.69 million rials, up 1.1%.
