Iran's Currency Drops After Attack On Israel

Illustration of the dollar exchange rate (ANTARA)

JAKARTA - Iran's rial currency plunged to its lowest level against the United States dollar (US) after Iran launched massive missile and drone attacks on Israel on Saturday evening April 13. Reporting from international CNBC, the Iranian currency exchange rate reached 705,000 rials per US dollar in the open market on Sunday, April 14 at around 10.30 local time. However, Iran's currency recovered slightly later.Iran itself in 2018 set an official exchange rate of 42,000 rials per US dollar. The decline in the value of the rial occurred hours after Iran launched an attack on Israel in response to an Israeli attack that killed several key Iranian commanders in Damascus earlier this month. Israel said it had identified 300 Iranian threats of various types and succeeded in countering 99% of the threat aimed at Israeli territory.

This is the first direct attack on Israel from Iran, which now faces the risk of trade and diplomatic restrictions. Iran'srials have long faced pressure from a very high inflation rate, triggered by US sanctions during the Donald Trump administration. The US has also cut Iran's major exports, including crude oil and oil products.