Economy, Business And Markets

Currencies Back on the Rise

Business & Markets Desk
Currencies Back on the Rise
Currencies Back on the Rise

The dollar, the euro and the British pound cut their losses versus the rial on Sunday as the foreign ministry denied late Saturday evening a breakthrough in nuclear talks with the West.

Iran denied on Saturday that it had reached an agreement with the United States to ship its surplus enriched uranium to Russia under new concessions aimed at clinching a comprehensive nuclear deal with six world powers known at the P5+1, Reuters reported.

Following the report, the rial ended its five-day rally in the foreign exchange market on Ferdowsi Street. The greenback went up 0.86 percent to 35,320 rials by 11:41 GMT on Sunday. The yen, the euro and the British pound that had taken a pounding in prior trading sessions, were the best gainers versus the rial.

The euro advanced nearly one percent to 42,500 rials and sterling rose 1.12 percent to 54,100 rials by 11:41 GMT on Sunday.

The Japanese yen gained all it had lost on Saturday and surged 3.45 percent to 30 rials per yen.

“The market is on fire,” a veteran currency exchanger told the Financial Tribune. “Some traders were shedding positions and taking profits. That and rumors of a deal led to the selloff. Now everyone is bullish on the dollar.”

The Associated Press, citing diplomats, said on Friday that negotiators had drawn up a catalogue for the first time at their December meeting in Geneva outlining areas of potential accord and differences in their 12-year nuclear dispute.

Iran and the P5+1 have already reached an interim agreement under which Tehran would limit parts of its nuclear activities in exchange for the West easing economic sanctions against Iran. The two sides have also agreed to continue talks until June in a bid to reach a permanent agreement.