Economy, Business And Markets

Currencies Extend Rally Against Rial

Currencies Extend Rally Against RialCurrencies Extend Rally Against Rial

The rial fell for a second consecutive day against all major currencies and gold on Tuesday.

The US dollar edged up by 0.06 percent to 32,620 rials by 12:30 GMT. The greenback had advanced by 0.49 percent on Monday.

The dollar is nearing a key resistance level that it has tried to bank above twice before, in the past two months.

The euro climbed by 0.62 percent to 40,830 rials extending its gains versus the rial, according to data compiled by the Financial Tribune.

The British pound also rose by 0.27 percent and broke above the 51,000 rials mark. Sterling traded at 51,120 rials, by 12:30 GMT. Meanwhile in the gold market the price of Azadi bullion coin surged as safe haven demand in Tehran and an increase in the international price of the precious metal worked in tandem. The Azadi rose by over 0.8 percent for the second successive day, its largest rally in two months.

“We can see coin, [the Azadi], reaching 10,000,000 rial level with the prevailing trend,” said a Tehran based trader to the Tribune, “demand is set to rise as we approach the Eyd [the start of Iran’s calendar year on 20 March].”

Azadi’s price hit 9,290,000 rials on Tuesday, while bullion for immediate delivery was little changed at 1,199.14 an ounce by 12:40 GMT, up by 0.17 percent. Gold is holding below a three-week high of $1,207.70 reached on Friday.