Rising optimism over peace agreement and easing oil uncertainty boosts rial activity in informal markets.
Image: The Nation
Demand for the Iranian rial has increased sharply in Pakistan’s informal currency market following progress in a US-Iran agreement to end hostilities.
Dealers and traders say interest in the currency has risen as geopolitical tensions ease and oil price uncertainty declines.
The development comes after Washington and Tehran moved toward a framework deal that includes reopening key trade routes and launching formal negotiations on a final settlement.
Lower global oil prices and expectations of improved regional stability have also influenced sentiment in currency markets.
In Pakistan, the rial is mainly traded for cross-border commerce and speculative investment linked to future currency appreciation.
Analysts say the surge is driven by both trade requirements and expectations that sanctions relief could strengthen Iran’s economy.
However, they caution that the currency remains highly volatile and sensitive to shifts in diplomatic progress and energy markets.
