Forex Continues on the Upside

EghtesadOnline: Foreign exchange rates extended gains on Thursday after the dollar advanced above 270,000 rials a session before.

News ID: ۷۸۶۹۹۴

11 September 2021

The greenback closed more than 1% higher or 2,900 rials, reaching 278,200 rials in Tehran’s open market after vacillating between 269,000-272,000 rials for ten days before jumping to 275,300 rials on Wednesday

The euro was up 0.5% or 1,570 rials to fetch 326,960 rials. The UK pound sterling was worth 381,290 rials, rising 0.62% or 2,370 rials and the UAE dirham closed more than 0.5% higher, gaining 400 rials to be quoted at 76,200 rials.

Undesirable political developments triggered a fresh bout of volatility in the currency market in the middle of the week. The  market reacted to media reports by the International Atomic Energy Agency on Tuesday claiming that  “ Iran is refusing to allow inspectors access to nuclear-related sites and hindering a probe by the United Nations atomic agency, casting doubt on efforts to revive the 2015 nuclear deal.”

With currency prices rising and Central Bank of Iran’s own exchange bureaus unwilling to do likewise, the price gap between official exchange shops and the open market has risen to 14,000 rials.

Known as the “CBI’s arm in stabilizing the currency market,” the official exchange shops tagged the dollar at 263,500 rials, up  0.3% compared to the previous session.

To tame the rising trend, the regulator significantly increased offers in the wholesale market, known as the regulated forex market.

In the last business week, a total of $42.9 million were sold in the regulated market, up from $36.6 million a week before.

In regulated market one dollar bought 266,230 rials, up slightly by 0.15% compared with the session before. The market is a network of banks and certified moneychangers working under CBI supervision who deal in wholesale forex trade.

Under the downswing in international markets on Thursday, domestic gold prices were not much high as opposed to the forex rates.

The popular Emami gold coin gained close to 0.3% or 350,000 rials to change hands at 122.1 million rials. Half Bahar Azadi coin slipped slightly by 0.1% and lost 50,000 rials to be priced at 61.45 million rials and one gram of 18-karat gold was worth 11.83 million rials, up 0.3% compared with a session before.

In the international markets gold held near two-week lows on Thursday, with spot gold settling at $1,789.39 per ounce. Prices inched higher on Friday as the dollar eased slightly, but uncertainty over the US Federal Reserve’s next moves on unwinding its economic support measures kept the bullion in a relatively tight range, Reuters reported. Spot gold rose 0.3% to $1,800.47 per ounce  and US gold futures were up 0.2% at $1,804.