Iran’s currency fell to an unprecedented low on Wednesday, weakening sharply against the U.S. dollar as pent-up demand for foreign exchange surged following weeks of conflict and a subsequent ceasefire.
The rial dropped to around 1,810,000 per dollar in open market trading, marking a decline of roughly 14% to 15% over two days, according to Iranian media reports.
The sudden movement follows a period of relative stability during six weeks of fighting involving the United States and Israel, when access to foreign currency was constrained.
The easing of wartime conditions after an April 8 ceasefire has allowed accumulated demand for hard currency to flow back into the market.
At the same time, renewed U.S. economic pressure, including a blockade on shipping linked to Iranian ports, has restricted the country’s ability to earn foreign exchange through exports.
Strikes targeting Iranian infrastructure have further disrupted key industries such as steel and petrochemicals, compounding the shortage of hard currency.
Other currencies, including the euro and the Emirati dirham, also gained significantly against the rial amid the volatility.
Currency tracking platforms reported varying exchange rates, indicating continued instability in pricing.
The depreciation adds to mounting economic challenges, with inflation reaching 65.8% year-on-year in the Iranian month ending April 20.
Analysts suggest inflationary pressures may intensify as the weaker currency raises import costs and reconstruction demands increase.
The rial has already lost around 70% of its value in 2025, driven by prolonged geopolitical uncertainty.
Previous sharp declines in the currency have triggered widespread protests, including demonstrations that escalated earlier this year following earlier depreciation episodes.
Authorities have linked thousands of deaths to those protests, while external estimates suggest significantly higher figures.
Officials indicate that stabilization may occur once currency supply improves and institutional contracts are activated.