The Iranian rial has plummeted to historic lows against the US dollar, reaching approximately IRR1,085,000 per dollar according to free market exchange rates in out-of-hours trading on September 26, IntelliNews can reveal.

The exchange rate data from Bonbast, which tracks Iran's free market currency rates, shows the rial trading at “108,550 tomans per dollar” on September 26, equivalent to IRR1,085,500 when converted from the toman denomination used in daily transactions.

The latest drop follows negative developments in nuclear negotiations, worsening the currency crisis in the Islamic Republic as President Masoud Pezeshkian holds talks with world leaders at the UN General Assembly in New York, seeking to prevent European nations from imposing new sanctions on the economy.

The currency chart reveals a dramatic decline over recent weeks, with the rial losing significant value since early September when it traded around IRR950,000 per dollar. The rial briefly strengthened in mid-September (Pro) before resuming its downward trajectory to hit its lowest ever rate against the greenback.

Iran's currency has faced sustained pressure from international sanctions, particularly those targeting its oil exports and banking sector, which has been cut off from global and Western banking systems due to heavy US sanctions.

The Central Bank of Iran has attempted various measures to stabilise the currency, including foreign exchange interventions and regulatory changes, but these efforts have proven insufficient against persistent economic pressures.

In another effort to redirect the forex-starved country, Iran's government has promoted domestic production and import substitution policies to reduce dependence on foreign currency. However, these initiatives have had limited success in addressing the underlying economic challenges driving currency depreciation.

Gold prices in Iran also experienced dramatic increases following international gold reaching a new record of $3,758 per ounce, with domestic coin prices rising by millions of rials over the past week, Eqtesad Online reported on September 24.

Mohammad Kashti-Aray, a gold market expert, said international gold prices gained $76 per ounce over the past week, reaching $3,758 on September 24 - a new record high.

"Over the past week we witnessed ongoing global political developments, speeches by presidents and world leaders at the United Nations, discussions about the Ukraine war... collectively these did not reflect optimism about global conditions, so we continued to see high demand for gold and precious metals internationally," Kashti-Aray said.

Gold prices have risen $120 over the past two weeks, whilst silver gained 10% and platinum increased 6% in the past week alone.

Domestic Iranian gold and coin prices followed international trends, with currency rates also hitting new records amid political developments.

New Bahar Azadi coins reached IRR108.1mn on Thursday, up IRR8.7mn for the week. Old design coins rose IRR7mn to IRR99.8mn, whilst half coins increased IRR5.2mn to IRR56.2mn.

Earlier on September 24, Tehran's capital market experienced its second consecutive day of declines on September 23, with the main index dropping 0.79% to 2,524,417 points whilst IRR182bn in retail investor funds exited the market, EcoIran reported.

The Tehran Stock Exchange's main index fell to 2,524,417 points, with the equally weighted index declining 0.82%, indicating widespread selling pressure across market symbols. The negative performance on the second day of autumn has intensified concerns about continued downward trends.

Daily trading value reached approximately IRR3 trillion, matching the monthly average. Despite normal trading volumes, this level failed to halt the market's decline as traders adopted cautious approaches at the start of the autumn season.