Value of Iranian rial drops against foreign currencies due to escalating tensions with Israel
Date
10/7/2024 4:10:51 AM
(MENAFN) On Sunday, the value of Iran's currency, the rial, dropped against foreign currencies due to escalating tensions with Israel, which has raised concerns about a potential military strike. The US dollar climbed to 640,000 rials in Iran's open market, marking the highest exchange rate since April, when Iran carried out a major missile and drone attack on Israel. The increase in the dollar's value follows Israel's announcement that its army is ready to retaliate after Iran's latest missile attack last Tuesday.
On Tuesday night, Iran's Revolutionary Guards Air Force launched around 200 missiles at Israel, marking the second direct attack in less than six months. The escalation of military actions has had a significant impact on Iran's economy. On Sunday, prices for all types of coins surged by 1.5 to over 3 percent. The price of an “Emami” gold coin reached nearly 500 million rials ($875), setting a new record.
The situation also negatively impacted Iran's stock market, with the Tehran Stock Exchange closing in the red for the sixth consecutive day. Investors are responding to the growing threat of an Israeli military response, which has led to widespread economic instability. The ongoing geopolitical tensions have heightened fears of further economic disruption in the region.
Despite these challenges, Iranian MP Mohammad Movahed expressed optimism, telling local media that the currency market has developed enough stability to withstand such non-economic pressures. He emphasized that any price fluctuations would likely be temporary, as seen in previous instances.
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