Dollar drops against Iran’s rial on nuclear deal signals

The US dollar has logged its biggest daily drop in months against Iran’s currency the rial amid stronger signals that an international nuclear deal between Iran and world powers could be revived in the near future.

The dollar fell to as low as 470,000 rials on Sunday, down more than 4% compared to the close of trade a day earlier and down by nearly 10% against prices reported last week.

The fall came after Leader of the Islamic Revolution Ayatollah Seyyed Ali Khamenei said in a speech in Tehran that reaching a nuclear agreement with foreign powers would not be a problem for Iran provided that the country’s nuclear infrastructure remains intact.

The remarks was the strongest signal in months that a deal could be worked out to allow a return of the United States to the JCPOA, the agreement signed between Iran and six world powers in 2015 that curtailed Tehran’s peaceful nuclear program in return for removal of sanctions from the country.

The JCPOA has suffered since 2018 when the US unilaterally withdrew from the deal and imposed sanctions on Iran.

A report by Tasnim news agency said many people were trying to sell their hard currency savings in anticipation of lower foreign exchange prices.

The report quoted a source from an Iranian association of currency exchange shops as saying that foreign currency prices could continue to fall in the coming days.

Prices started to fall earlier this week after reports emerged that Iranian and US officials had got in touch to discuss a return to the JCPOA.

Both Iran and the US have rejected reports suggesting there has been an agreement to return to the deal on an interim basis.

That comes as Iran’s unveiling of a supersonic missile earlier this week had also affected the currency prices in the country.

ME