Returning To Depreciation

Our negative rial view is playing out with some erratic moves over the past few days: after closing at IRR9,675/US$ on March 3, the unit had dropped to IRR9,931/US$ at one point on March 4. True, the rial did strengthen in late January and early February, but depreciation over the course of the year has long been our core scenario. Indeed, while our end-2009 target for the unit is IRR10,970/US$, we warn that the journey from here to there could be rather disorderly.

To read the full article, please choose one of the following options: