Iranian currency falls past 2 million rials to the dollar as economic pressure intensifies before Washington’s latest sanctions announcement
Dubai: Iran’s currency plunged to a new record low on Monday, with the rial falling to 2.02 million rials per US dollar on the informal market as investors reacted to the prospect of tougher American sanctions.
The decline came as Washington prepared to unveil a new package of sanctions targeting Iran and its trading partners, in what US officials have described as a major escalation of economic pressure.
The rial had already been under strain before the outbreak of the current conflict between Iran, the United States and Israel on Feb. 28. However, nearly six months of war, combined with existing sanctions, inflation and economic weakness, have accelerated the currency’s decline.
Analysts say the latest fall in the rial reflects growing concerns about the potential impact of additional US measures on trade, investment and access to foreign currency.
The latest depreciation marks another setback for Iranian households and businesses, as a weaker currency typically increases the cost of imported goods and adds further pressure to consumer prices.
The US is expected to announce additional sanctions later on Monday as part of a broader effort to tighten economic restrictions on Tehran.
Source: Emirates 24|7