US Markets
USD

Iran's rial climbs to one-month high after central bank injects cash

Credit: REUTERS/ESSAM AL-SUDANI

The Iranian rial bounced back from record lows to a near one-month high against the U.S. dollar on Tuesday after the central bank said it had injected about $375 million into the market to support the troubled currency.

DUBAI, Oct 20 (Reuters) - The Iranian rial bounced back from record lows to a near one-month high against the U.S. dollar on Tuesday after the central bank said it had injected about $375 million into the market to support the troubled currency.

The dollar was selling for about 277,000 rials on the unofficial market, down from 304,500 on Monday, according to foreign exchange site Bonbast.com. The business daily Donya-e-Eqtesad's website gave the dollar rate as 288,000, down 24,000 rials from Monday.

The currency has still lost about 52% of its value in 2020 under the economic impacts of U.S. sanctions and the coronavirus pandemic in the country, which has the highest COVID-19 death toll in the Middle East.

Ebrahim Mohammadvali, head of the Tehran gold and jewellery traders union, attributed the decline of the dollar to a "heavy offer of hard currencies on the market by the central bank".

"This is also behind a fall in the prices of gold and coins," Mohammadvali told the news website Fararu.

The central bank said on its website that it had pumped $75 million into the currency market on Monday, its fifth such intervention in a week.

Tuesday's rise took the rial back to its trading level on Sept. 22, before it fell to an all-time low of around 322,000 per dollar on Oct. 15.

(Reporting by Dubai newsroom Editing by Mark Heinrich)

((dubai.newsroom@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

USD

Latest Markets Videos

    Reuters

    Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

    Learn More