🎈 Up Big Today: Find today's biggest gainers with our free screenerTry Stock Screener

Iran currency slips to new lows amid U.S., Europe tensions

Published 12/14/2024, 12:53 PM
Updated 12/14/2024, 12:55 PM
© Reuters. FILE PHOTO: A currency dealer poses for a photo with a U.S one dollar bill and the amount being given when converting it into Iranian rials in an exchange shop in Tehran, Iran December 25, 2022. Majid Asgaripour/WANA (West Asia News Agency) via REUTERS/Fi
USD/INR
-

DUBAI (Reuters) - The Iranian currency extended its fall on Saturday, hitting a new all-time low against the U.S. dollar amid uncertainties about Donald Trump's imminent arrival in the White House and tensions with the West over Tehran's nuclear programme.

The rial plunged to 756,000 to the dollar on the unofficial market on Saturday, compared to 741,500 rials on Friday, according to Bonbast.com, which reports exchange rates. The bazar360.com website said the dollar was being sold for about 755,000 rials.

Facing an official inflation rate of about 35%, Iranians seeking safe havens for their savings have been buying dollars, other hard currencies, gold or cryptocurrencies, suggesting further headwinds for the rial.

The dollar has been gaining against the rial since trading around 690,000 rials in early November amid concerns that once inaugurated in January, Trump would re-impose his "maximum pressure" policy against Iran with tougher sanctions and empower Israel to strike Iranian nuclear sites.

Iran's currency again declined after the board of governors of the UN nuclear agency IAEA passed a European-proposed resolution against Tehran - increasing the risk of new sanctions - and following the downfall of Syria's President Bashar al Assad, a long-time ally of the Islamic Republic.

© Reuters. FILE PHOTO: A currency dealer poses for a photo with a U.S one dollar bill and the amount being given when converting it into Iranian rials in an exchange shop in Tehran, Iran December 25, 2022. Majid Asgaripour/WANA (West Asia News Agency) via REUTERS/File Photo

Trump in 2018 reneged on a nuclear deal struck by his predecessor Barack Obama in 2015 and re-imposed U.S. economic sanctions on Iran that had been relaxed. The deal had limited Iran's ability to enrich uranium, a process that can yield fissile material for nuclear weapons.

Iran's rial has lost more than 90% of its value since the sanctions were re-imposed in 2018.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.