Iran’s rial currency hits new record low as US prepares to announce more sanctions

TEHRAN, Iran (AP) – Iran's currency hit a record low Monday as Washington prepared to announce new sanctions it remarked would add further pressure on an economy already battered by previous sanctions and a U.S.

Key points

• Since the war began, rice is up some 60% and rates of beef are more than 150% higher.
• The rial dropped to 2.02 million to the U.S.
• The currency had already been under pressure before the U.S.

What happened

For context, the rial dropped to 2.02 million to the U.S. Dollar as trading opened on currency markets. Iran's official Central Bank rate stood at around 1.5 million rial to the dollar, but the market rate is what most Iranians pay.

In practice, the currency had already been under pressure before the U.S. And Israel attacked Iran on Feb. As Iran faced double-digit inflation and negative expansion, but has repeatedly hit new lows as almost six months of war have taken an even greater toll, 28.

Iranians find daily staples increasingly unaffordable. Since the war began, rice is up some 60% and rates of beef are more than 150% higher. The International Monetary Fund forecasts that GDP will contract more than 5%.

The bottom line

For now, irans rial currency hits new record low as US prepares to announce remains the part of the story worth watching, and further updates are likely as more details are confirmed.