The dollar continued to gain against the national currency on Wednesday strengthening above the critical 250,000-rial level.
In choppy trade the greenback made a brief retreat to 250,000 rials after news reports said Akbar Komijani, the vice-governor, had been appointed as the new governor of Central Bank of Iran.
The American currency later rebounded and climbed to 253,000 rials in Tehran’s open market, up 0.55% or 1,500 rials compared to Tuesday.
In a slow but steady upsurge, the dollar has gained almost 8% in the past month. The uptrend is mainly due to investors’ analysis of the political climate in general and the nuclear talks in Vienna in particular.
A major concern is the potential for failure in the extended nuclear negotiations to revive the Iran nuclear deal. Forex have rallied in the past two sessions triggered by disappointing statements made by the government spokesman, Ali Rabiei, on Tuesday.
Rabiei told reporters that the government is in no rush to wrap up the difficult nuclear negotiations in the few weeks before it leaves office, IRNA reported.
Other major currencies also gained on Wednesday. The euro rose 0.24% or 720 rials to reach 297,810 rials, the UK pound sterling climbed 0.52% to fetch 347,600 rials and the UAE dirham was traded at 69,200 rials posting 0.3% increase.
Official exchange shops affiliated to the Central Bank of Iran tagged the dollar at 253,810 rials, up 1.7%, to keep pace with rising trends in the open market.
Gold was impacted by the rally in the currency market. The Emami gold coin gained 0.36% rising to 108.3 million rials, 400,000 rials higher compared to the earlier session. Half Bahar Azadi gold coin lost 0.35% and was worth 57.8 million rials. One gram of 18-karat gold was worth 10.72 million rials, up 0.82%, according to Tehran Gold and Jewelry Union website.
While gold prices have been rising in the domestic market in tandem with higher forex rates, in the international markets it is set to post its worst month since November 2016 on the US Federal Reserve’s shift to a hawkish policy stance. For the month, prices were down 7.6%.
