Iran’s currency has soared to its strongest position since last summer with expectation of the incoming Biden Administration in the US.

The rial stood at 214,000:1 v. the US dollar on Tuesday morning, regaining about 15% in value in the past week.

Amid the Trump Administration’s withdrawal in May 2018 from the 2015 nuclear deal and its “maximum pressure” of comprehensive sanctions, the rial lost more than half its value in spring and summer 2020. On October 15, the currency sanks to a new historic low of 322,000:1.

But the prospects of a President Joe Biden, and American re-entry into the deal between Iran and the other 5+1 Powers (UK, France, Germany, China, and Russia), brought recovery. On November 7, as Biden was declared the winner of the US Presidential election, the rial rebounded to 254,000:1.

Iran’s Currency Rebounds With Expectation of Trump Defeat

The recovery has continued despite sparring between Iran and the 5+1 Powers about a revised nuclear deal.

European powers as well as Washington are seeking coverage of the Islamic Republic’s ballistic missile program and extension of the terminal dates for some provisions.

Tehran has ruled out any negotiations and is seeking leverage by suspending adherence to key parts of the agreement. Earlier this month, it resumed pre-2015 production of 20% enriched uranium, which can be further enhanced to a military grade of more than 90%.

Last weekend the UK, Germany, and France criticized Iran’s production of uranium metal. Iranian Foreign Minister Mohammad Javad Zarif lashed out that the three European countries “have done ZILCH to maintain” the nuclear deal.

UPDATED: Europe — Iran’s Production of Uranium Metal Threatens 2015 Nuclear Deal