Economy, Business And Markets

Dollar Pushes Azadi Up

Dollar Pushes Azadi UpDollar Pushes Azadi Up

The rial fell against the dollar and gold coins on Sunday, as stocks retreated from 4-month highs, with investors hedging their bets and locking in profits.

The Azadi benchmark bullion coin jumped 2.21 percent to 9,710,000 rials by Saturday's close, a five-week high. All gold coin denominations rose in Tehran, partly prompted by spot gold's gains in the international markets on Friday, and partly due to the dollar's strengthening versus the rial. Bullion for immediate delivery closed up one percent at $1,207.59 an ounce on Friday.

The greenback advanced 1.06 percent to 33,240 rials by Saturday's close on Ferdowsi Street – center of currency trading in Iran, giving a boost to gold. A stronger greenback makes dollar denominated gold more expensive for buyers in other currencies.

The euro and sterling both slid on Saturday, trailing their fall in the international markets of Friday. The euro fell nearly half a percent, braking below the 36,000 rial mark to 35,920 rials, while sterling edged down 0.37 percent to 48,960 rials.

Conversely investors cashed out of equities on Saturday, as they locked in profits from last week's rise in equities. Tehran Stock Exchange's main index, the Tedpix, fell almost one percent to 70,022.80 points, with petroleum related shares leading the fall.

The equity index rose 7.5 percent to a 4-month high last week, as Iran and the six world powers – Britain, France, Germany, China, Russia and the United States – reached a framework agreement over Iran's nuclear energy program, paving the way for the lifting of economic sanctions imposed on Iran.