Economy, Business And Markets

Sterling Climbs as Rial Falls

Sterling Climbs as Rial FallsSterling Climbs as Rial Falls

Sterling rose to a three-week high versus the rial on Saturday, on the British currency’s rally in the international markets coupled with a general retreat of the rial against major currencies.

The rial fell across the board as major currencies advanced against it on Saturday, despite small gains in the Tehran Stock Exchange.

Sterling rose on Friday, having seen its biggest daily rise in more than a year, the previous day after the Bank of England brought forward its forecasts for when inflation would return to its two percent target.

Sterling halted its advance 60 rials shy of the key 53,000 level in Tehran. The British currency’s international rise sent it up just over one percent to 52,940 rials by 10:15 GMT.

“The rial was over-bought, so it’s natural to see some correction in prices,” a Ferdowsi Street trader told the Financial Tribune.

The US dollar was up 0.15 percent to 34,280 rials on Saturday, giving a boost to all major currencies. The greenback started the week in green after three consecutive weeks of losses due to optimism that a nuclear deal with the West would come through in the coming months. The US currency is rebounding from a two month low.

The euro was one of the other main gainers in Tehran. It went up 0.46 percent to 39,410 rials by 10:15 GMT on Saturday. The European currency, which is struggling to keep its value in light of the Greek debt crisis and weak economic growth, is traded below 40,000 rials since Jan. 24. The euro has not seen such price level in 12 months.

The Emirati dirham also gained 0.21 percent and changed hands at 9,400 rials in Ferdowsi Street, as it held above a two-month low.

The Turkish lira also rose 0.28 percent to 14,150 rials by 10:15 GMT on Saturday.

The commotion wasn’t just in the currencies. The world’s safe haven which pared gains after rising one percent on Friday, sent the Azadi gold coin up 0.81 percent to 9,950,000 rials by 10:15 GMT on Saturday.

Azadi’s sister bullion coin, the Emami rose even further, going up 1.01 percent to 10,010,000 rials, highest since Feb. 6.

Bullion for immediate delivery had a small weekly loss, as the dollar steadied following weaker than expected US economic data. Spot gold rose to a session high of $1,235.20 an ounce and by 20:03 GMT on Friday, and was up 0.52 percent at $1,227.10 per ounce. It was on track to finish the week down 0.4 percent.

Rial’s fall coincided with minor gains in equities. TSE’s main index clawed its way up from a 16-month low, gaining just over 91 points or 0.14 percent and reaching 64,932.10 by the session’s close.