Iranian rial hits new low, surpassing 2.5 million rials per dollar
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Iran's rial fell to a new record low, with currency traders in Tehran trading the rial at an exchange rate of more than 2.5 million rials per US dollar. The latest depreciation came just 27 days after the rial hit its previous record low of 2.2 million rials per dollar on September 2. Since the United States and Israel launched war against Iran in February, the rial has repeatedly fallen to record lows, driven by US sanctions and a maritime blockade that have cut Iran's oil exports and left the country short of dollar revenue. The depreciation is also caused by the burden of the Iranian government's spending on the war with the United States, inflation running at about 70%, and Iranians' reluctance to hold rials for fear their value will keep falling, turning instead to US dollars, gold and other assets that can preserve value.