Iran’s rial continued to weaken on Monday afternoon in a sign of flagging confidence in the country's troubled economy, with the US dollar trading at an all-time high above 1.19 million rials according to local exchange-rate websites.
The rise outstrips a previous record of 1.17 million hit on September 30 after European states moved to reimpose UN sanctions on Iran over its disputed nuclear program, further constraining its trade opportunities.
By Monday afternoon, the dollar was trading at just over 1.19 million rials, the Euro about 1.38 million and the UK Pound near 1.57 million.
Local exchange-rate websites also showed the Emami gold coin — Iran’s most traded benchmark coin used by households and investors as a store of value — hitting a fresh record above 1.26 billion rials, extending a sharp rise that began over the weekend.
The latest slide in the rial comes amid soaring inflation, renewed volatility in Iran’s unofficial markets and continued uncertainty over stalled nuclear talks with the United States.
The US dollar, which traded at about 140,000 rials in 2018, has risen roughly eight-fold since Donald Trump restored US sanctions on Iran seven years ago.
Britain, France and Germany triggered the so-called snapback mechanism to restore UN sanction under Security Council Resolution 2231, citing Iran's failure to comply with its nuclear obligations.
The move restored UN penalties previously suspended under the resolution, tightening external constraints on Iran’s economy. Tehran denies seeking a nuclear weapon and accuses the United States and European countries of economic warfare.
On Monday, local media reported that alongside fading hopes for reviving nuclear talks, rising gasoline prices have also contributed to turbulence in Iran’s currency and gold markets.
After months of debate, the government formally introduced a three-tier gasoline pricing system, with the third rate set to take effect at 50,000 rials on December 6.
