After days on the pause button, forex rates jumped again Thursday along with gold prices in Tehran.
The American currency made a big leap in the unofficial market touching 320,500 rials to post 2.7% or 8,500 rials rise on the session before. It was 4.5% higher from Monday’s rate.
Forex trade has seen more than its share of drift in recent weeks. Rates retreated from historic highs in the beginning of June thanks to the heavy intervention by the Central Bank of Iran, and later guarded hopes about the success of fresh talks to revive Iran’s nuclear deal.
Trying to tame volatility, the central bank said it was increasing forex supply by allowing exporters to sell their overseas proceeds at higher rates.
The weekend rally in the currency market started after media reports said the two-day nuclear negotiations in Doha, the capital of Qatar, had ended in stalemate. The latest negative report was enough for currency dealers and speculators to jack up prices in the unofficial market.
Iran’s 2015 nuclear deal, known officially as Joint Comprehensive Plan of Action (JCPOA) offered sanctions relief to Iran in return for some limits on its nuclear activity, but the US under Donald Trump pulled out of the landmark deal in 2018 imposed tough new economic sanctions.
Success of the new sensitive talks is expected to lift the rial that has lost much of its value in two years after the financial sanctions are lifted and billions in Iranian forex assets blocked abroad are released.
Other major currencies also soared. The euro changed hands at 336,000 rials, rising more than 4% from 322,000 rials in the middle of last week. The GBP was worth 393,700 rials, up from for 373,500 rials, and the UAE dirham ended at 87,900 rials.
Despite the sharp rise in the unofficial market, rates were almost unchanged in the official forex market operated by CBI-affiliated exchange shops.
The dollar was quoted at 277,110 rials by Melli Exchange. It was traded lower in wholesale market, known as the regulated forex market, buying 275,900 rials, according to the Iran Currency Exchange website.
Gold prices jumped on the footstep of the currency market despite the decline in the international bullion markets. The Emami gold coin shot up more than 7.2% or 11.38 million rials to 156.46 million rials.
The Half-Bahar gold coin gained 5.9% or 5 million rials at 845 million rials and one gram of 18-karat gold was worth 14.34 million rials.
In the international market the yellow metal dropped below the psychological threshold of $1,800 on Friday, and was set for a third straight weekly loss, as the dollar strengthened and India raised import tax on the metal to curb inflows.
Spot gold fell 0.7% to $1,794.10 per ounce, after it hit its lowest since May 16 at $1,791.30.US gold futures dipped 0.6% to $1,796.10.
