Iran: Forex Market Retreats, Gold Gains

EghtesadOnline: Currencies traded choppily in Tehran’s market on Wednesday, before ending lower and gold prices market soared.

News ID: ۷۵۱۴۰۹

06 November 2020

Like other financial markets around the globe, Iran’s forex market was also impacted by updates on the results of the presidential election in United States on Wednesday.

With currency speculators anticipating a Donald Trump victory, the dollar surged to 302,000 rials in the early hours of trade -- 10,000 rials higher than Tuesday.

Prices paused later during the day amid uncertainty among over who will finally win the White House. The greenback closed at 295,000 rials or up 0.8% compared to the earlier session.

The euro was up 0.7% or 2,520 rials, to reach 345,410 rials and the UK pound sterling closed at 384,030 rials, 0.5% higher compared to the day before, eghtesadnews reported.

Moneychangers affiliated to the Central Bank of Iran took a preemptive measure on Wednesday raising rates in the early hours and even before unofficial currency dealers started the day.

Acting as the CBI arm in the forex market, the moneychangers normally adjust prices in tandem with ups and downs in the open market to lessen the price gaps.

Melli Exchange, affiliated to Bank Melli Iran, pushed up the dollar o 289,300 rials up 6,840 rials, or 2.4% compared with Tuesday.

In the bullion market, Emami gold coin gained more than 2%, or 3 million rials to reach 149 million rials. Half Bahar Azadi was up by 5 million rials to 8 million rials, posting 6.5% daily growth.

In international markets gold fell 1% on a stronger dollar on Wednesday after the latest voting tallies from the US election showed a tight race, with the incensed incumbent Donald Trump winning in Florida and leading in a few other battleground states, Reuters reported.

Spot gold fell 0.9% to $1,890.99 per ounce and US gold futures dropped 1% to $1,891.30 per ounce.