Iran currency slips to new lows amid tensions with the west

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

The rial plunged to 756,000 to the dollar on the unofficial market on Saturday against 741,500 rials on Friday, according to Bonbast.com, which reports exchange rates.

Facing an official inflation rate of about 35 per cent, 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.