Dollar Price Forecast for Wednesday, 22 Mehr 1405 / Dollar Heads Toward New Price Floors

The dollar slipped back to around 257,000 tomans in Tuesday's trading, extending the downward trend of recent days. The central bank governor's pledge to keep the dollar's price falling, along with reports of continued message exchanges between Iran and the United States, has reinforced expectations of further declines.

According to the report of Ambassador Arjan, the price of the dollar opened at 259 thousand tomans in trading on Tuesday, 21 October 1405, and in the rest of the trading, it fell back to 257 thousand tomans. On Monday, this banknote was closed at 261 thousand tomans, and thus on Tuesday, compared to Monday, there was a decrease of 4 thousand tomans. Decrease in purchase demand, Abdul Naser Hammati's statements about the possibility of continued drop in the price of the dollar and news related to the continuation of the exchange of messages between Iran and the United States were among the factors affecting today's market behavior.

However, the recent drop in the price of the dollar happened in a situation where there is still no clear result of the diplomatic developments and the pressure of sanctions continues. Therefore, the currency market for Wednesday trading depends more than anything on the continuity of supply, the amount of buying demand and the reaction of traders to the current price range of the dollar.

The central bank's promise reinforced expectations of a slowdown

The comments of the Governor of the Central Bank on Monday about the continued decline in the price of the dollar have been one of the factors influencing the behavior of traders in the last two days. Hemmati announced that the central bank has taken the necessary measures to control the market and the exchange rate is expected to experience a further decrease. These statements were made in a situation where the price of the dollar had reached higher levels in the previous days and some traders had entered the market with the expectation of continued price growth.

Along with currency policy, diplomatic developments have also affected market expectations. Ismail Baqaei, the spokesman of the Ministry of Foreign Affairs, announced on Monday that the exchange of messages between Iran and the United States continues through mediators, and that Tehran is still examining the response of the American side to Iran's proposals. However, reports show that disagreements over the terms of the talks still persist and that no definitive agreement can be reached yet.

Meanwhile, on Tuesday, Britain announced new sanctions against Iran; An action that shows that external pressures are still one of the risk factors in Iran's economic environment.

Economic experts say that if the price of the dollar is supported in the range of 257 thousand tomans and the selling pressure is reduced, the price is expected to fluctuate in the approximate range of 257 to 260 thousand tomans. In this scenario, returning to the range of 261,000 Tomans requires increasing demand or reducing the effect of bearish signals.

They believe that if the supply of the market maker continues and the positive political news reinforces expectations of a decrease, the failure of the support of 257 thousand tomans can lead the dollar to the range of 255 to 256 thousand tomans. If the selling pressure continues, the range of 252 to 253 thousand Tomans can be considered as the next destination for correction.

On the other hand, any negative news about the negotiation process or the reduction of the effectiveness of currency policies can strengthen the demand again. In this case, the return of the dollar price above the channel of 260 thousand tomans can be a sign of the reduction of corrective pressure and open the way to move towards the range of 261 to 263 thousand tomans.

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