Iranian Rial Plunges to New Low Against Dollar

The ailing Iranian rial fell to a new low against the dollar as the country grew increasingly isolated amid Western criticism of Iran's strict security measures and its relations with Russia.

Dollars were selling for as much as 370,200 Iranian rials on the unofficial market on Saturday, up from 367,300 Iranian rials on Friday, according to foreign exchange website Bonbast.com. Later, the rial recorded 41,400 against the greenback.

The rial has lost 13.8% of its value since nationwide protests erupted after the death of Iranian-Kurdish Mahsa Amini, 22, on September 16 in police custody, according to Reuters.

The unrest poses one of the biggest challenges to the ruling regime in Iran since the 1979 Islamic Revolution.

The Echo Iran economic website said traders had little hope of reviving the nuclear deal with world powers and expected increased Western pressure due to Tehran's crackdown on protests and its military ties with Russia.

These relations include the drones that Iran reportedly sold to Russia and used in the war in Ukraine, which Tehran and Moscow deny this.

"Some traders say that the current international conditions would make the chances of reviving the nuclear deal few, and this has caused cautious buyers to enter the dollar market ... and the price of this currency is taking an upward trend," Eko Iran said.

"From the point of view of some traders, this news of US and Western pressure on Iran could attract the attention of currency speculators," the site continued, adding that Iran's central bank may still be able to support the rial.

Last Friday, Canada imposed new sanctions on Russia and Iran over accusations of human rights violations, and Australia said on Saturday that it would impose sanctions targeting people and entities in both countries.