Iraqi dinar loses ground against US dollar in Baghdad, Erbil

BAGHDAD, Iraq — The Iraqi dinar weakened against the US dollar on Wednesday in Baghdad and in Erbil, the capital of the Kurdistan Region, according to market data cited by local exchange offices. Traders reported increased dollar buying driven by safe-haven demand, with exchange rates trading at different levels in the two capitals. The currency move coincided with a period of rising tension between the United States and Iran, developments that Iraqi officials and market participants view as sensitive for Gulf energy routes and broader regional security. Officials in Baghdad have said diplomatic channels remain open in an effort to ease tensions between the two sides. The Central Bank of Iraq said it is keeping its intervention tools ready to preserve exchange-rate stability. Authorities added that currency movements are being monitored closely and that additional measures could be introduced if needed. No further details on possible steps were immediately available.