Foreign exchange rates fell again on Wednesday in Tehran amid optimism among traders over the outcome of the ongoing talks between Iran and world powers in Vienna to restore the landmark 2015 Iran nuclear deal.
Ali Baqeri Kani, Iran's senior negotiator, told the parliament on Tuesday that the negotiations are making progress, implying the possibility of reaching agreement in the near future, Mahmoud Abbaszadeh, a member of the Majlis National Security and Foreign Policy Commission, said.
According to Eghtesadnews, Kani’s statement apparently had a positive impact on the market on Wednesday. The dollar lost close to 2,500 rials compared to the previous day in the open market and was sold for 275,000 rials.
Official exchange bureaus affiliated to the Central Bank of Iran, tagged the greenback at 251,190 rials, down 0.29%.
In the CBI’s regulated forex market the dollar bought 250,424 rials, slightly higher than on Tuesday. The regulated market is a network of banks and certified moneychangers working under CBI supervision and dealing in wholesale trade.
Other major currencies also fell. The euro lost 0.9% to buy 311,970 rials while the UAE dirham dropped 0.3% and was quoted at 76,400 rials.
Observers say the forex market is closely monitoring the complex nuclear negotiations. Recent updates from the Austrian capital and some western sides party to the talks have led to guarded optimism that a final agreement acceptable to Tehran is not far off.
Riding on the positive trend in the extended nuclear talks, the dollar lost more than 9% in the past three weeks, dropping from as high as 305,000 rials on Dec. 22.
Iran is holding indirect negotiations with the United States to thrash out details on how both sides can resume compliance with the 2015 nuclear deal, known as the Joint Comprehensive Plan of Action.
Under the impact of the declining forex rates, gold prices also fell. The Emami gold coin lost 0.5% and was traded at 121.2 million rials. The widely traded coin has lost 2.26% in seven days.
The Half Bahar Azadi coin was worth 67.6 million rials, posting 2% decline in one week while the Quarter Bahar Azadi coin lost 0.3% on Wednesday to buy 37.7 million rials.
According to Reuters, gold in the international markets steadied around the important $1,800 level on Wednesday as a pullback in the dollar and US Treasury yields cushioned a jump in investor appetite for riskier assets. Spot gold gained 0.2% at $1,803.30 per ounce and US gold future rose 0.2% to $1,804.50.
