Economy, Business And Markets

Traders See Greenback in Uncertain Territory

Traders See Greenback in Uncertain Territory Traders See Greenback in Uncertain Territory

The greenback’s hesitant path in the next few days seems pretty uncertain. Analysts are divided about the US dollar's trend in the volatile hard currency market. The Persian daily, Donya-e-Eqtesad has published a report on the prospects of the American currency in the next few days.

Taking into account the meager surge in its value against the rial, some forex market analysts believe that the greenback will not remain on the ascending trajectory in the next couple of days.

Given the recent supply and demand, it is unlikely the greenback will fetch more than 35,000 rials, the analysts say, the newspaper reported at the weekend.

However, other economic pundits and forex dealers believe a greenback rally is around the corner. A faction of the dealers is confident that an increase in the rate to over 35,000 rials will come on the heels of the February 26 parliamentary elections seen by many as a barometer of what to expect on the economic front in the months ahead.

Other traders who believe in a likely rally for the currency opine that the forex market is in an unpredictable state. The dollar will very likely climb to over 35,000 rials within days preceding the Majlis vote, they insist.

Yet those who do not count on a higher value for the dollar argue that there is enough supply in the market to depress forex prices. They defend their turf on the premise that the ample supply of greenback in the open market in recent weeks discounts the possibility of its rise from the 35,000-rial mark in the next few days.”

The currency receded back to prices below 35,000 rials on February 13, the day on which it was sold at 34,930 rials. The American currency has not risen to 35,000 rials since then.

Needless to say it has gone through minor fluctuations in the past ten days. The greenback was sold at 34,590 on Saturday, February 20. As of Sunday it bought 34,680 rials which shows a meager 0.03% increase compared to the previous day. On Monday the currency changed hands 34, 617 rials in the Tehran market.

The USD has been swinging in the range of 34,500-35,000 rials in the past 2-3 days.

Gold Coins

Bahar Azadi gold coin has been gyrating between 980,000-990,000 rials in the past few days. It was traded for 985,000 rials at the start of the Iranian week on Saturday. It recorded a 50,000 rial increase compared to the close of last week.

The price of gold coins which was at or near 9,500,000 rials before February 1, began rising after the increase in the international price of the yellow metal.

Gold coin prices have been on the rise since February 14. It was traded on Monday for 985,000 rials. On Sunday Azadi was bought for 9,880,000 rials, which shows the potential for higher prices as the Iranian year comes to a close (March 19) and the people prepare for the Nowrouz (New Year) holiday season when families and friends exchange gifts, namely the gold coin in different sizes, carats and prices.