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Greenback Rebounds From 3-Month Low

Greenback Rebounds From 3-Month LowGreenback Rebounds From 3-Month Low

The US dollar rebounded against the rial after five consecutive days of decline, as Iran’s Leader reiterated his redlines in the nuclear talks with the West.

Ayatollah Seyyed Ali Khamenei on Tuesday ruled out freezing sensitive nuclear work in the country for a long time, saying sanctions imposed on Iran should be lifted as soon as Tehran reaches a final deal with major powers, national TV reported.

The greenback rebounded 0.4% to 32,800 rials from a three-month low by 1214 GMT on Wednesday.

The American currency briefly hit a 32,960-rial high in early trade but was unable to test the 33,000-rial barrier.

Other major currencies and gold coins also rose on the back of the dollar’s rise on Wednesday in Tehran.

Traders on Ferdowsi Street–the center of foreign exchange trading in Tehran–have been on edge during the past month, as they cautiously eyed Iran’s nuclear negotiations with the six world powers—Britain, France, Germany, China, Russia and the United States—for cues about the direction of talks, and whether the two sides would strike a final accord.

As investor’s stalled major trades till after the outcome of the talks is discerned, trading volume an volatility  have dropped to record lows.

The dollar’s volatility range has shrunk to its lowest in 12 months, with prices fluctuating in a 750-rial range.  

Iran and the six powers are trying to clinch a deal to restrict Iran’s nuclear energy program in exchange for sanctions relief.

The P5+1 want Iran to commit to a verifiable halt of at least 10 years on sensitive nuclear development work as part of a landmark atomic deal they aim to reach by June 30.

Such a deal would end a 12-year nuclear standoff between Iran and the West, which suspects Tehran is trying to develop a nuclear weapons capability. Iran denies the allegation, saying its program is for peaceful uses only.

Financialtribune.com