Iran’s rial posts significant gain against US dollar after Muscat talks
Iran’s currency and equity markets surged in tandem on Sunday, as the rial rallied nearly 10% against the US dollar amid renewed optimism over nuclear talks, while the Tehran Stock Exchange’s main index climbed 2.21% to a record 2,908,647.67 points, signaling investor confidence in potential sanctions relief.
The Iranian rial surged by approximately 10% against the US dollar traded at 870,000 rials on Sunday, following talks between the Iranian and US representatives regarding Tehran’s nuclear program and sanction relief.
The going rate for US dollar on Sunday reflected a 90,000-rial drop compared to the previous day’s rate of 960,000 rials per dollar.
The main index of the Tehran Stock Exchange also rose by 2.21%, reaching 2,908,647.67 points.
Gold market shock
Despite global gold markets being closed on Sunday and international prices holding steady at $3,238 per ounce, Iran’s domestic gold and coin markets saw sharp declines due to the US dollar’s steep drop in the unofficial currency market.
Influenced by positive outcomes from indirect Iran-US talks in Oman, the unofficial forex and gold markets continued their downward trend on Sunday. 18-karat gold traded at 6,867,900 tomans ($71.54) per gram, marking a 646,220-toman ($6.73) decline compared to Saturday’s prices.
On Saturday, Iranian Foreign Minister Abbas Araghchi and Steve Witkoff, the US president’s special envoy for Middle East affairs, led the first round of indirect talks in the Omani capital of Muscat.
Both sides described the talks as positive and constructive, with Araghchi saying that the next round is expected to take place on April 19 at the same level.
Gold prices reflecting global reality
Emphasizing the significant decline in domestic gold and coin prices on Sunday, Head of the Tehran Jewelry Union Nader Bazrafshan analyzed that despite a $200 increase in global gold prices over the past 10 days, the domestic market has followed an inverse trend, with prices now aligning closer to reality.
“Today, the gold coin market witnessed a 10-million-Tomans drop, and there is currently no ‘speculative bubble’ in domestic prices compared to global rates. The current conditions are described as transparent and reliable for public transactions, marking an opportune time for trading.”