Iran rial stronger after nuclear talks
2013-03-04 16:53
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Dubai - The Iranian currency jumped about 9% against the
US dollar because of apparent government intervention and a positive tone at
nuclear talks between Iran and world powers, currency websites and Iranian
media reported on Monday.
The rial traded around 32 500 to 33 500 to the US
dollar in the free market on Monday, compared to about 36 300 on Sunday, the
reports said.
The currency lost more than half its value and hit record
lows in 2012, battered by US and European economic sanctions which slashed
Iran's oil earnings.
But the rial has regained some strength in the past week,
rising about 2% last Wednesday after talks on Iran's disputed nuclear programme
with a group of world powers, known as the P5+1, in Kazakhstan.
Although no breakthrough was reported in the talks,
Iranian officials portrayed them as a positive step.
Since Sunday, the Iranian government appears to have provided
larger supplies of dollars to the currency market, boosting the rial, Mehr news
agency reported without giving details.
"Those active in the currency and coin markets see
the widespread provision of hard currency to the market and the positive environment
of negotiations between Iran and the P5+1 group in Almaty as the main factors
in the drop in the price of coins and currency," the agency said.
Iranians can exchange their rials for hard currencies
through loosely regulated money changers, though the government cracked down on
the traders and arrested dozens after the rial's plunge last year.
The Fars news agency quoted an unnamed money changer on
Monday as saying the rial's rebound this week had been so strong that many
traders had stopped buying and selling currency until prices stabilised.
