The dollar was trading at just under 30,000 rials today in Tehran, revealing a persistent optimism in the currency market.
The rial has been rising in value since Hassan Rohani’s election victory of June 14. Rohani won on a platform of moderation and the re-establishment of appropriate international relations.
The rial had fallen from just over 10,000 rials to the dollar about two years ago to four times that rate. The Ahmadinejad administration had blamed the widespread U.S. and EU sanctions against the country for the declining value of the national currency.
The victory of Hassan Rohani in the presidential race has triggered a rise in the national currency. Public optimism about improvement of the economy and easing of sanctions has reduced the demand for foreign currencies and gold, and redirected some of this liquidity to the stock market which has also been on the rise in the past week..