Iran’s rial unexpectedly rallies after weeks of steep falls

TEHRAN, Iran — Iran’s currency, the rial, unexpectedly rallies after weeks of depreciation following US President Donald Trump’s decision to withdraw America from Tehran’s nuclear deal with world powers, sending Iranians rushing to exchange shops to cash in.

In the Iranian capital, money exchange shops offer 135,000 rials for one US dollar. Only yesterday, the Iranian rial was selling 170,000 to $1, with prices recently going as high as 190,000 to the dollar.

But whether this will be a permanent rally remains unclear, as US sanctions targeting Iran’s vital oil industry loom in early November.

Analysts offered various reasons for the rally, including a new policy allowing the Central Bank to more muscularly intervene to support the rial, as well as allowing the import of more foreign currency from abroad.

There is also hope in Iran that Europe will be able to shield the country from further US sanctions due in November and targeting Iran’s oil industry. Rising oil prices also have some more hopeful about the Iranian economy. Benchmark Brent crude now trades near $85 a barrel and some analysts believe it could reach $100 a barrel by the end of the year.

— AP