Iranian rial falls to record low as dollar surpasses 2.5 million

Iran’s rial fell to a fresh record low against the US dollar on Tuesday, with the free-market exchange rate surpassing 2.5 million rials per dollar.

The dollar was quoted at 2.542 million rials, up 3.84% from the previous day, according to Pashizi, a website that tracks Iran’s free foreign exchange market. It reached an intraday high of 2.548 million rials.

Currency reaches successive record lows

The latest decline followed a series of record lows for Iran’s currency. The dollar reached 2.4 million rials in the free market on Monday as the economy faced heavy US sanctions and high inflation.

The rial has weakened further since the US-Israeli assault began in February, with the war and a US naval blockade adding to pressure on Iran’s economy.

Talks focus on Strait of Hormuz

The latest slide came as mediators worked with Washington and Tehran on talks aimed at reopening the Strait of Hormuz.