Foreign exchange rates fell on Monday at Tehran’s currency market after two sessions of rally, as speculators increased offers to save gains.
The US dollar dropped 6,500 rials or 2.8% to fetch 237,500 rials in Tehran’s open market. Euro was quoted at 289,580 rials to lose 2.9% compared with the earlier session and the UK pound sterling was worth 339,280 rials, 7,800 rials or 2.3% higher compared with a session earlier. The UAE dirham dropped by 1.9% or 1,250 rials to retreat to 65,690 rials on Monday.
The greenback jumped from around 232,000 rials last Thursday to as high as 249,000 rials on Sunday following reports about the dismissal of Central Bank of Iran Governor Abdlolnasser Hemmati from office.
Volatility subdued and declining trends started at late trade on Monday after the removal of Hemmati took a semblance of reality, causing forex rates to drop in forward deals.
Late on Sunday, the Cabinet members voted for ending Hemmati’s mandate at CBI and nominated his vice governor to assume the governor’s responsibilities.
Running for the forthcoming presidential elections, Hemmati was asked to resign by President Hassan Rouhani because his election campaign could interfere with his duties as the CBI governor.
Currency prices declined slightly at official exchange bureaus affiliated with banks. CBI’s affiliated moneychangers tagged a USD at 234,050 rials, down 0.3% compared with the previous session. The greenback jumped 5.35% a session earlier.
The USD was down 0.75% to 231,090 rials in the wholesale currency market known as regulated forex market, which is a network of banks and certified moneychangers working under CBI’s auspices and deals in wholesale trade.
Gold prices recorded declines on Monday influenced mainly by lower forex rates amid an upbeat mode in international markets. The Emami gold coin slipped to 106.45 million rials, losing close to 1% or 1 million rials compared to the earlier session.
Half Bahar Azadi gold coin lost 2.5% and was worth 59.5 million rials. The 18-karat gold reversed course and posted gains, such that one gram of 18-karat gold was worth 10.9 million rials, up 1.1% compared with a session earlier, according to Tehran Gold and Jewelry Union website.
Gold prices rose on Monday in international markets and were headed for their biggest monthly jump since July 2020, boosted by a weaker US dollar and lower bond yields, while growing inflationary pressure also lifted demand for the metal.
Spot gold was up 0.1% at $1,905.14 per ounce by 0637 GMT, while US gold futures gained 0.2% to $1,908.80. Spot prices have risen nearly 7.7% so far this month, Reuters reported.
