Decline Extends in Forex, Gold Prices

The dollar lost the psychological 300,000 rials support level and retreated to 298,000 rials, losing more than 1.3% or 4,000 rials in Tehran’s open market, putting losses in the past two days to 3%.

The greenback gained more than 3% last week, reaching 306,500 rials the highest in 14 months. The euro was the biggest loser and shed 2.1% or 7,060 rials, closing at 335, 587 rials.

Similarly, the UK pound sterling was down 1.8% to buy  394,790 rials and the UAE dirham lost over 1% or 800 rials to fetch 81,500 rials.

Despite the downswing in open market rates, prices at  exchange bureaus affiliated to Central Bank of Iran were  almost unchanged.  The dollar was worth 276,830 rials at Melli Exchange, indicating the subtle 0.04 % decline on Sunday.

In the regulated market, where currencies are traded wholesale, the greenback lost 0.5% to 272,870 rials.

The regulated market is a spot market operated by a network of banks and certified moneychangers dealing in wholesale currency. It is supervised by the CBI.

The domestic bullion market was also bearish impacted by the currency market trends.  The popular Emami gold coin lost more than 0.7% or 950,000 rials on Monday to close at 129.75 million rials.

The Half Bahar Azadi coin dropped more than 0.4% to trade at 68 million rials and one gram of 18-karat gold was valued at 12.85 million rials, down 0.6% or 76,000 rials, according to Tehran Gold and Jewelry Union Website.  

Gold inched higher on Monday in international markets as elevated US inflation lifted its safe-haven appeal while investors awaited the fed’s meeting to learn how quickly the US central bank planned on unwinding its bond-buying program, Reuters reported.

Spot gold was up 0.2% at $1,785.20 per ounce after rising as much as 0.8% on Friday and US gold futures were up 0.1% at $1,785.70 per ounce.