Forex and Gold Higher

EghtesadOnline: Foreign currencies gained against the rial on Monday in Tehran’s open market. The dollar climbed 15,000 rials to reach 291,000 rials, more than 5% higher compared to earlier session.

News ID: ۷۵۱۴۰۰

04 November 2020

Other major currencies, namely euro and pound sterling, also increased. One euro was worth 326,390 rials, up 5,000 rials or 1.5%. The UK currency changed hands at 361,780 rials on Monday, posting 1.2% growth compared to Sunday’s close, the Persian economic website eghtesadnews reported.

The UAE dirham clawed back above 80,000 rials -- up 4,400 rials, 5.4% overnight.

Citing market experts, the website ascribed the new forex rally to decisions by lawmakers who on Monday approved a bill that obliges the government to reduce its commitments enshrined in the landmark nuclear deal, officially known as the Joint Comprehensive Plan of Action (JCPOA), signed between Iran and major world powers in 2015.

In related news, the CBI said it is striving to balance rates in the market. It has injected millions of dollars in the highly chaotic market over the past several days and said that it is trying to boost the secondary forex market, known as Nima, by increasing offers.

Nima is a trade platform operating under the central bank oversight were exporters sell their overseas earnings and importers buy. In the secondary market the US dollar is currently worth 264,000 rials.

Soon after the upsurge in the unofficial market, exchange bureaus under the auspices of the Central Bank of Iran increased rates to lessen the difference with the open market that is usually higher.

Melli Exchange, affiliated to Bank Melli Iran, pushed up the dollar rate by 10,000 rials, tagging it at 282,000 rials on Monday.

Under the influence of forex trends and eying prices in international markets, gold prices also made gains.

The Emami gold coin gained about 10% or 14 million rials on Monday to reach 146 million rials. Half Bahar Azadi increased by 3 million rials to 75 million rials posting a 4% daily growth. One gram of 18-karat gold fetched 13.15 million rials.

Gold rose on Tuesday in global markets as the dollar slipped and ambiguity regarding the declaration of US presidential results prompted investors to seek refuge of the safe-haven metal. Spot gold rose 0.4% at $1,901.86 per. US gold futures gained 0.7% to $1,906.30.