Rial falls sharply as West looks to push Iran's isolation
LAST UPDATED: 09/09/2012 15:58
DUBAI - Iran's currency, the rial, plunged to an all-time low on Sunday, exchange traders said, as Western nations sought to further isolate the country economically and diplomatically.
The rial's latest slump coincides with Canada's unexpected decision to sever ties with Iran and talks among European Union member states about introducing further embargoes against Iran.
The United States and its allies have imposed sanctions since the beginning of the year over Tehran's nuclear activities which they suspect are part of a drive to develop a weapons capability, allegations which Iran has repeatedly denied.
The open-market dollar rate stood at around 24,000 rials, traders told Reuters by telephone on Sunday, a slump of nine percent over three days.
On Thursday, the rial traded at about 22,000 to the dollar, they said.