Currency, Gold Retreat in Tehran

EghtesadOnline: Forex rates declined on Monday pulling down gold prices in the Iranian market. The dollar retreated after breaking past the critical 230,000 rial at the start of trading week on Saturday.

News ID: ۷۸۶۴۶۳

19 May 2021

The greenback lost 1.7% or 3,900 rials to close at 228,500 rials in Tehran’s free market. The UAE dirham’s loss was bigger at 2.31% to fetch 62,360 rials.

Both the UK pound sterling and the euro too declined slightly. A euro was worth 281,460 rials down 0.3% compared to the session earlier. One pound sterling bought 321,800 rials down from 327,500 rials quoted a day earlier.

In the official exchange bureaus affiliated to the Central Bank of Iran the American currency was lower at 222,240 rials, down 0.85% or 1,900 rials compared to a day earlier.

The greenback plunged to a multi-month low of 205,000 rials a week earlier before rising steadily to 230,000 rials on Saturday, paring more than 5% of the loss.

It appears that currency speculators don’t have much appetite for leaning on higher forex rates in the near future as uncertainties remain over major factors with known power to impacting the market. One major factor over the past several weeks is the nuclear talks in Vienna to remove the US sanctions  and revive the nuclear deal signed in 2015 between Iran and major world powers.

Efforts to boost supply in the secondary foreign exchange market has also impacted the forex rates. The CBI on Sunday said currency hawala worth $322 million were offered during the day at the Nima market platform but less than a third of ($103 million) had buyers at 205,740 rials.

Nima is a currency trade platform where exporters sell their overseas earnings to importers at prices that are usually lower than the open market.

As expected gold market was also down despite the fact that precious metal has been rallying in the international markets.

The popular Emami Gold coin dropped 2.3% or 2.3 million rials to trade at 100.7 million rials on Monday. Half Bahar Azadi coin was worth 51 million rials, down about 2% and one gram of 18- karat gold fell 0.5% to 10.12 million rials.

In world markets gold hit a 3-1/2 month high on Monday as a dip in US Treasury yields and persistent inflation worries in the bullion market burnished its appeal, Reuters reported.

Spot gold rose 0.4% to $1,848.66 per ounce after hitting its highest since Feb. 2. US gold futures gained 0.5% to $1,848.