Iran's rial hits new low against dollar as economy reels

DUBAI, Sept 13 (Reuters): The Iranian rial fell to a new low against the US dollar on Saturday as the economy reels under the Covid-19 pandemic and US sanctions.

The dollar was selling for as much as 263,500 rials on the unofficial market, up from 257,000 on Friday, according to foreign exchange site Bonbast.com. The economic daily Donya-e-Eqtesad's website gave the dollar rate as 260,800, up 5,100 rials from Friday.

The currency has lost about 49 per cent of its value in 2020 as a drop in oil prices has deepened the economic crisis in the country, which also has the highest Covid-19 death toll in the Middle East.

In mid-July, the US dollar rose to around 255,000 rials but the rial then recouped some of its losses to trade at around 220,000 in August.