Currency, Gold Slightly Higher

After pulling back to the critical 250,000-rial level a session earlier, the dollar was quoted at 251,000 rials in the open market, up 0.55% or 1,300 rials compared to Monday’s close.

The euro was up 0.19% buying 297,150 rials, 590 rials higher than the earlier session. The UK pound sterling gained 0.4% to reach 347,480 rials. The biggest gainer was the UAE dirham rising 0.8% or 550 rials to fetch 68,600 rials.

At the Melli Exchange the greenback was tagged at 250,990 rials -- 0.5% higher compared to Monday. However, it took a reverse course in the wholesale currency market, known as the regulated forex market, where it was down 0.5% % to fetch 243,600 rials.    

The regulated market is a network of banks and certified moneychangers working under CBI supervision dealing in wholesale forex trade.

Upsurge in currency prices, in tandem with a rally in the international gold markets, pushed up rates in the domestic bullion market.

The widely traded Emami gold coin climbed 1.3% to fetch 107.2 million rials. The Half Bahar Azadi coin gained 0.87% to reach 57 million rials and one gram of 18-karat gold was worth 10. 67 million rials, up 0.92% or 97,000 rials, the Tehran Gold and Jewelry Union website said.  

International gold prices were up 1% on Tuesday having risen above the key $1,800 level, once again supported by a weaker dollar as investors looked to minutes from the US Federal Reserve’s June meeting for more insights into policy decision.

News reports said spot gold rose 0.8% to $1,805.51 per ounce by 0905 GMT, after touching its highest since June 17 at $1,808.91. US gold futures jumped 1.2% to $1,805.20.