Iran’s currency and gold markets experienced a sharp decline in prices as news emerged that Tehran and Washington would hold direct negotiations on Saturday April 12.

The US dollar recorded a 5.53% decline compared to the previous day’s close, selling at IRR999,500 on Tehran’s Ferdowsi Street.

This marks the first recovery in the Iranian rial’s value in the past couple of months. It came after Donald Trump, US President, confirmed plans for “direct talks in the highest levels” with Iran. “It may be possible to reach an agreement with Iran, and that would be great,” Trump said. “Negotiations in the highest levels are under way, and their success will benefit Iran.”

Street traders told bnm IntelliNews that the supply of dollars outstripped demand in the market following the announcement of talks scheduled to begin on April 12. Many predict the dollar could find support in the IRR900,000 channel in the coming days. However, some analysts suggest this development has created a short-term shock but point out that the broader monetary policies of the Central Bank remain unchanged.

The downward trend in exchange rates began early in the day when crypto exchanges reduced the USDT price by about IRR80,000, from IRR1.07mn to IRR990,000.

Abbas Araghchi, Minister of Foreign Affairs, broke his silence on the social media platform X in response to President Trump’s remarks. He confirmed that Iran and the United States would hold indirect talks on Saturday in Oman, adding: “It is as much a test as it is an opportunity. The ball is in America’s court.”

The market recovered some of its losses following Araghchi’s statement. During the trading day, the euro fell to IRR1,065,000, marking a drop of IRR70,000 from the previous day. The Emirati dirham traded at IRR265,000 after losing IRR250,000, while the Turkish lira also declined by IRR1,700 to IRR26,500.

The tumble in foreign exchange rates swiftly pulled down gold and bullion prices. Emami gold bullion decreased by IRR63mn, or 6%, to IRR905mn. Half gold bullion retreated by IRR24mn, or 3.8%, to IRR595mn. A gram of 18-carat gold, which had surged above IRR80mn, slipped back to IRR74.2mn. The US dollar was being sold at IRR1mn later in the day.

According to a veteran currency dealer in Tehran, who spoke to bnm IntelliNews on condition of anonymity, traders often sell their holdings in anticipation of positive diplomatic developments, prompting price declines in the run-up to negotiations. “Should optimism remain high once talks begin, demand typically increases, sometimes reversing the downward trend,” he said. “The final price direction often depends on early signs or official statements from the negotiating parties.”

Technical observers argue that the initial surge in prices earlier this year, attributed to heightened speculation, has now subsided. “The market appears to have reached relative equilibrium,” reads a report from Eghtesad News. “The bubble that formed due to panic buying is deflating, and we are seeing a return to more stable trading.”

The Governor of the Central Bank of Iran, Mohammad Reza Farzin, told the CEOs of banks during a meeting on April 8 that the Bank would pursue stabilisation of rates in the currency market, referring to the CBI’s priorities for the current fiscal year. Many experts have also cautioned that while short-term factors such as negotiations can trigger sizeable swings, longer-term price movements will hinge on domestic monetary policies and broader economic conditions.

For now, all eyes remain on Saturday’s talks and the immediate signals they send to traders wary of both sudden shifts and enduring uncertainties.