Iranian Rial Plummets Amid Political Tensions

The Iranian rial hit a new low against the U.S. dollar due to uncertainty surrounding Trump's policies and tensions over Iran's nuclear program. People in Iran are turning to dollars and cryptocurrencies as safe havens. Recent UN resolutions and historical sanctions further strain the rial's value.

Amid escalating tensions and uncertainty, the Iranian currency, known as the rial, has plummeted to an all-time low against the U.S. dollar. This downturn is fueled by worries about Donald Trump's incoming administration and potential renewed pressures over Iran's nuclear endeavors.

The rial's decline continued as it fell to 756,000 per dollar on the unofficial market, compared to 741,500 just a day earlier. This precipitous drop is mainly attributed to Iranians seeking safety for their savings in American dollars and cryptocurrencies, perhaps bracing for harsher sanctions under Trump's 'maximum pressure' policy.

Additional strain on the currency comes from the recent European-proposed UN nuclear agency resolution against Iran, raising the prospect of new sanctions. Since the re-imposition of U.S. sanctions in 2018 after Trump's withdrawal from the 2015 nuclear deal, the rial has lost over 90% of its value.

(With inputs from agencies.)