Iran: Dollar Trims Losses

EghtesadOnline: Foreign exchange rates climbed on Saturday despite expectations that the prices would decline due to the diplomatic efforts in Vienna related to Iran’s nuclear agreement.

News ID: ۷۸۶۴۳۱

10 May 2021

The dollar was sold at 214,800 rials in Tehran's free market, posting 1.16% increase compared to Thursday's close, Eghtesad News website reported. The Euro was 2.13% higher to buy 261,390 rials.

Melli Exchange and other bank-affiliated moneychangers did not change the dollar rate quoting it at 202,340 rials. The euro bought 246,000 rials 0.61% lower than Thursday.

Negotiators in the Austrian capital are struggling to find ways to  revive the nuclear pact blown up by former US president, Donald Trump, in 2018 who imposed the toughest sanctions in history against Iran’s economy, namely on oil export, banks and insurance companies

Under the relatively positive political climate and in anticipation of a boost to the national currency, the greenback lost 8% late last month. The currency market has seen a flurry of sellers, mostly under the influence of political developments. The dollar closed Wednesday at a multi-month low of 208,000 rials in the free market after losing 4.8%.

Traders say the currency market will not stabilize so long as the  dollar is tagged lower than 230,000 rials. Gains in the past two sessions have made the traders optimistic about further increase in currency prices in the coming weeks.

On the other hand, some analysts believe that the Vienna talks remain a highly influential factor in the currency market and that the rates are likely to decline further if diplomatic efforts succeed and revive the landmark 2015 nuclear agreement.

Eghtesadnews website sees the UAE dirham as another key factor in the market. "The dirham is currently being traded at an average 60,000 rial. A meager change in its price could result in a shift in the market." The Emirati dirham was sold at 59,100 rials on Saturday, 2.41% higher than Thursday's close.

The Emami gold coin also was higher on Saturday posting a growth of 2.14% or 2.05 million rials to be sold at 95.45 million rials.

Half Bahar Azadi and the Quarter Bahar Azadi gold coins, however, continued to decline on Saturday. The former lost 1.97% to buy 51 million rials while the latter was traded at 32.25 million rials, down 2.33% compared to Thursday.