Forex Falls With Gold

EghtesadOnline: After a short-lived rally a session earlier, currency prices paused Monday dragging down prices in the domestic bullion market.

News ID: ۷۸۷۶۵۱

18 January 2022

The US dollar closed at 274,800 rials in Tehran’s unofficial market, logging 3,700 rials or 1.3% lower on the previous session.

The euro shed close to 0.6% to close at 313,840 rials while the UK Pound sterling was down 0.56% or 2,140 rials to buy 376,000 rials. The UAE dirham lost more than 0.9% and was sold for 75,300 rials.

Riding on some positive developments in the extended talks in Vienna to revive Iran’s nuclear deal, the dollar has lost more than 9% in the past three weeks, dropping from 305,000 rials on Dec.22.

Iran is holding indirect negotiations with the United States in the Austrian capital to work details on how both sides can resume compliance with the 2015 nuclear deal, known as the Joint Comprehensive Plan of Action.

The dollar has also seen big losses in the regulated forex market in Tehran in recent days. It was traded Monday at 253,720 rials in this market down 0.74%.

The regulated market is a CBI-affiliated spot market operated by a network of banks and certified moneychangers dealing in wholesale currency.

Earlier in the week, the CBI Governor Ali Salehabadi said supply of currency in the regulated market had increased in recent months, reaching $1.5 billion since the beginning of the fiscal year that ends in March, which was a whopping 274% growth over last year.

Official exchange bureaus affiliated to state banks tagged the dollar at 261,610 rials, down 0.4% on Sunday.

Gold prices kept pace with decline in forex rates. The Emami gold coin traded at 122.1 million rials Monday down 0.74% or 900,000 rials lower on the session before.

The Half Bahar Azadi coin lost 1.07% and was traded at 65.8 million rials while one gram of 18-karat gold was worth 11.86 million rials, down 1% on the day.

In international markets gold prices held their ground on Monday, with gains capped by expectations of monetary policy tightening in the United States, Reuters said.

Spot gold rose 0.1% to $1,819.41 an ounce while US gold futures edged up by 0.1% to $1,818.80. US markets were closed Monday for a public holiday.