The dollar retreats in Iran's free market as war risk subsides

Iran's currency market turned lower on Sunday, 2 August 2026 (11 Mordad 1405), the second trading day of the week, as geopolitical risk subsided. According to the newspaper Donya-e-Eqtesad, the dollar banknote rate fell 6,000 tomans that day to 187,000 tomans. The dollar had advanced above 193,000 tomans in Saturday's session on 10 Mordad, driven by a rising probability of military escalation.

The paper wrote that after the US president announced the cancellation of the planned strikes, increased supply and a retreat in precautionary demand turned the market around.

Free market reference rates are not uniform at this point, and each figure should be read against its source and date: a data provider quoted the dollar at 1,910,000 rials (191,000 tomans) in the early hours of Monday, 12 Mordad 1405, with a session high of 1,940,000 rials. The gap with the 187,000 toman figure reflects the different rate being reported (banknote versus reference rate).