Iran's rial slides toward 200,000 per dollar as economic pressure deepens

TEHRAN, Iran — TEHRAN — The U.S. dollar approached the 200,000 toman mark on Iran's free market on Sunday, reaching a historic level amid intensifying economic strain. Data from Iran's Gold and Currency Information Network (TGJU) showed the dollar trading at roughly 198,000 toman, with some free-market sellers pricing it close to 200,000, according to market trackers who put the sell rate at 197,950 toman and the buy rate at 195,950. The rial's slide has been sharp. The dollar opened last week at 186,500 toman, gaining more than 6% in less than a week. It took the currency about 15 years to reach 100,000 toman against the dollar; only around 15 months ago, the rial was still trading near that level, leaving its recent depreciation especially steep. Market participants and analysts cited high inflation, rising demand for foreign currency and concerns over tighter U.S. sanctions as the main drivers of the move. Reports indicated that U.S. President Donald Trump was preparing to announce a new sanctions package targeting Iran. Iran has been under heavy economic pressure from a six-month war that began with U.S. and Israeli strikes on February 28, persistent inflation and falling foreign-currency revenues. A near-shutdown of oil flows through the Strait of Hormuz and a U.S. blockade of Iranian ports have added to the strain on trade and currency flows.