Iran’s rial unexpectedly rallies after weeks of steep falls

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There is hope that Europe will be able to shield Iran from further U.S. sanctions in November targeting Iran’s oil industry.

Associated Press

TEHRAN, Iran: Iran’s currency, the rial, is rallying after weeks of depreciation following President Donald Trump’s decision to withdraw America from Tehran’s nuclear deal with world powers.

Money exchange shops in Tehran on Tuesday were offering 135,000 rials for one U.S. dollar. Only the day before, the rial was selling at 170,000 to $1.

Analysts offered various possible reasons for the rally, including a new policy allowing the Central Bank to more muscularly intervene to support the rial, as well as allowing imports of more foreign currency from abroad.

There is also hope that Europe will be able to shield Iran from further U.S. sanctions in November targeting Iran’s oil industry.

Some, however, warn that optimism could fade and the currency moves may just be a “herd reaction” to the rial strengthening.

 

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