Iranian currency shows unexpected strength amid US tensions

KARACHI: Despite the ongoing tensions between Iran and the US, the Iranian currency is witnessing an extraordinary improvement, which has also surprised financial experts.

According to Google search results, the price of 10 million Iranian rials on the morning of April 15 is equal to 2120.32 Pakistani rupees. However, the situation in the open market is quite different, where 10 million Iranian rials are trading between 6,000 and 9,000 Pakistani rupees, which is many times higher than the official or online rates.

Experts say that this extraordinary increase is mainly due to speculative buying. Investors are rapidly buying Iranian rials as rumors are circulating in the market that the value of this currency may increase further in the future and some circles are even talking about possible profits of up to 500 percent.

On the other hand, the ongoing diplomatic contacts and possible negotiations between Iran and the US have also affected the market trends. Traders hope that if an agreement is reached between the two countries, international sanctions on Iran may be eased, which may result in further strengthening of the Iranian currency.

It should be noted that before the Iran-US tensions, the price of 10 million Iranian rials in the local market of Pakistan was between about 2,000 and 2,500 rupees. This sudden increase in the current situation has become a source of interest for investors, however, experts have warned that investments should be made with caution in such an uncertain situation.