Iranian Rial Hits Record  Low as Dollar Tops 2.5 Million Rials

TEHRAN: The Iranian rial fell to an all-time low against the U.S. dollar on Tuesday, with the greenback rising above 2.5 million rials on the open market. On Monday, the dollar had already crossed the 2.4 million rial mark.
According to Bonbast-style tracking site Pasheezi, which monitors Iran’s free foreign exchange market, the dollar traded at 2,542,000 rials during Tuesday’s session, up 3.84 percent from the previous day. It touched an intraday high of 2,548,000 rials.
Economists say heavy U.S. sanctions, high inflation and economic pressure have badly hit the rial, with further weakness following the U.S.-Israeli attack that began in February. The war and a U.S. naval blockade added pressure on the economy, while disrupted oil exports and isolation from the international financial system worsened the situation.
The latest slide comes as mediators try to broker talks between Washington and Tehran on reopening the Strait of Hormuz, a key route for global oil shipments whose closure has triggered a crisis in the global energy market.
Ordinary Iranians face severe hardship, with prices of essentials soaring and purchasing power steadily eroding. Despite government claims of stabilizing the economy, uncertainty persists in the market, and investors are turning to the dollar as a safe currency.