The US dollar dropped 3% on Tehran's Ferdowsi Street on April 12, as Iranian and US officials concluded negotiations in Oman, Intellinews can reveal.

Exchange shops in Tehran priced the dollar at IRR958,000, marking a 3.62% decline compared to the previous day's closing rate. The euro also fell by 3%, selling at IRR1.08mn, while the UAE dirham traded at IRR263,400, down 3.6%.

The currency markets have responded positively to news of the indirect talks between the Iranian delegation, led by Foreign Minister Abbas Araghchi, and US Middle East envoy Steve Witkoff. Recent announcements of negotiations had already brought the USD down to around IRR990,000 by the weekend.

Traders on Tehran's Ferdowsi Street told Intellinews that the foreign exchange market is at a standstill. "Until the final outcome of the Iran-US negotiations is clear, no one is willing to take risks or invest," one trader said.

The euro in the regulated market—known as the Iran Centre of Exchange (ICE)—was the only exception, showing positive growth during the day. The ICE, regarded as the central bank's arm for managing exchange rates, sold the euro at IRR794,351, indicating 3.7% growth compared to April 11.

Tether (USDT) also declined by 3.07% during the day, trading at IRR948,500 on cryptocurrency exchanges.

The negotiations come as US President Donald Trump has threatened military action should Iran fail to halt its nuclear programme, which has advanced significantly since Trump abandoned the 2015 nuclear deal during his first term.

Following the talks, a member of the Iranian negotiating team announced that the negotiations between the two sides had been "generally good" so far, as ISNA reported on April 12.

The indirect negotiations began at 15:20 local time in Muscat, led by Iranian Foreign Minister Abbas Araqchi and senior US negotiator Steve Witkoff. The talks are being conducted through indirect channels. 

Iranian and American delegations are stationed in separate halls with Omani officials moving between them to deliver messages, according to Iran's Foreign Ministry.

"Our intention is to reach a fair and honourable agreement from an equal position," Araqchi told reporters upon arrival in Oman. "If the other side enters with the same position, there will be a chance for an initial understanding that could lead to a negotiation process."