Currency rates made significant gains against the rial on Tuesday triggering fresh demand in the domestic gold market.
The US dollar crossed the resistance level of 310,000 rials to buy 314,000 rials in the Tehran’s unofficial market, posting more than 1.7% gain on the session before.
The euro was up 1.9% or 6,100 rials to be traded at 319,040 rials, the British pound gained close to 2% and was quoted at 367,290 rials while the UAE dirham closed at 86,800 rials, gaining 1.6% or 1,400 on Monday.
Market observers ascribe the surge in rates to mounting uncertainty about the stalled diplomatic efforts to revive the Iran nuclear deal.
The renewed volatility apparently is a response to a recent statement by the three European countries party to the 2015 deal, known officially as the Joint Comprehensive Plan of Action.
They questioned Iran’s intention and commitment to conclude negotiations on the deal. Iran’s Foreign Ministry described the E3 statement as “unconstructive” that contradicts expected good faith with regard to negotiations on the revival of the 2015 nuclear deal.
Despite big swing in the unofficial market, prices were little changed at the authorized moneychanger operated by the CBI.
The greenback was tagged at 286,420 rials at Melli Exchange with no change from Monday. It was traded at 284,600 rials in the regulated forex market, down 0.08%.
The regulated market is a CBI-affiliated spot market operated by a network of banks and certified moneychangers dealing in wholesale currency.
As expected, the jump in forex rates impacted the domestic bullion market. The Emami gold coin changed hands at 147.5 million rials on Tuesday, rising more than 2.9% or 4.31 million rials in one day, according to Eqtesad News website.
The Half Bahar Azadi coin gained 2.17% on the session before to buy 82.8 million rials and one gram of 18-karat gold was traded at 13.37 million rials, up 0.9%.
