Iran's national currency dropped to a historic low of 1.8 million to the U.S. dollar today, as a fragile ceasefire between the United States and Israel held.

The rial stayed stable in the early weeks of the war, which began on February 28, in part because there was little trading or imports, News.Az reports, citing foreign media.

However, the currency began to slide on Monday. Experts warn that its fall is likely to fuel further inflation in a country where many imported goods, from food and medicine to electronics and raw materials, are affected by the dollar rate.

A US naval blockade during the ceasefire has increased pressure on Iran’s already battered economy by halting oil shipments.

Pakistani Prime Minister Shehbaz Sharif said today his government was continuing efforts to ease tensions between the US and Iran following an initial round of direct talks on April 11.

A currency shock in January helped fuel nationwide protests over rising prices.

Iran’s economy has faced decades of sanctions, chronic inflation and a widening gap between official and open-market exchange rates.

The prices of basic household goods were already rising before the rial’s latest fall.

News.Az 

By Ulviyya Salmanli