Iran's currency experiences major crash following Trump's victory

Iran’s currency plummeted when markets opened Wednesday, hitting a record low of 703,000 to $1, according to traders in Tehran, following former President Donald Trump’s decisive victory in the US presidential election the day prior.  

While the rial would make a slight recovery, finishing the day strong for unknown reasons at 696,150 to the dollar, the impact of the Republican presidential nominee’s return to the White House was immediate.  

Iran’s long-struggling economy, already crippled by crushing international sanctions re-imposed after Trump withdrew from the 2015 nuclear deal, will likely be a target of further punitive measures under the new administration.  

Both Biden and Trump's heavy-handed approach to Iran has clearly had an impact, with the rial falling from 32,000 to the dollar in 2015 to 584,000 by the time reformist President Masoud Pezeshkian took office in July. 

Iran downplays what a Trump presidency means

Iran, however, has downplayed any immediate effects from Tuesday’s US election, with a spokesperson for the president’s office highlighting the continuation of US policy toward Iran across administrations.  

“The election of the US president doesn’t have anything specifically to do with us,” she said. “The major policies of America and the Islamic Republic are fixed, and they won’t heavily change by people replacing others. We have already made necessary preparations in advance.”  

As Pezeshkian, who won Iran’s snap presidential election as a moderate focused on mending the country’s economic woes, pursues a strategy aimed at easing sanctions, public sentiment remains mixed amid an escalating regional conflict with Israel.