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Forex Summer Rally Heats Up

Forex Summer  Rally Heats UpForex Summer  Rally Heats Up

The US dollar continued its rally in Tehran's market on Saturday, gained about 200 rials and changed hands for 37,920 rials to reach its highest rate since the beginning of the new Iranian year (March 21).

According to Tehran Gold and Jewelry Union's website, the rial was quoted at 37,520 to the dollar less than a week ago, showing the bull run in the currency market.

Euro, another high demand currency in Tehran's market, gained 450 rials on Saturday. The rial was quoted at 44,100 to the euro, which has been unprecedented for years.

The European currency started its rally in domestic exchange market a couple of weeks ago, but gained momentum during the final days of the previous week, which has prevailed.

The surge in forex exchange rates started before Eid al-Fitr festivities, marking the end of the Muslim fasting month of Ramadan (June 25), but according to forex experts, the main reason behind the leap in rates is summer holidays and high demand for foreign currencies as the number of foreign trips rises.

The crisis facing shadow banks in the Iranian banking system and the region's military conflict are other reasons behind the rally.

In tandem with foreign exchange rates, Emami and Bahar Azadi gold coins both gained 30,000 rials and fetched 12,190,000 rials ($325) and 11,820,000 rials ($315.2), respectively.

 

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