Tether cryptocurrency has reached a new record high of IRR 1.04mn, surpassing Ferdowsi Street's hard dollar exchange rate on March 30 as people dump the rial further weakening the national currency.

The cryptocurrency, which is pegged to the US dollar, has become increasingly popular with Iranians who are barred from accessing regular international financial channels due to suffocating American sanctions. Meanwhile, the rial continues to weaken daily as President Donald Trump squeezes Tehran's leadership over reaching a new nuclear deal. 

Tether, which had been fluctuating between IRR 940,000 and IRR 990,000 since March 21, jumped five channels in a single trading day.

"The price gap between Tether and the Tehran dollar, previously estimated at around IRR 50,000, has increased significantly with Tether's record-breaking," according to market analysts quoted in the report.

Tether has fluctuated between IRR 1mn and IRR 1.045mn in the past 24 hours and is currently trading at IRR 104mn, demonstrating unusual gains compared to traditional currency markets.

Multiple factors have influenced Tether's price surge, including increased demand for Tether as a safe-haven asset, rising domestic exchange rates, lack of confidence in financial markets, and uncertainty surrounding diplomatic negotiations.

Street traders believe this price jump cannot be attributed solely to regular supply and demand factors, suggesting market maker interventions may have played a role in the increase as more people find access to the cryptocurrency. 

Some currency market analysts claim that overnight Tether drops and suspicious high-volume sales during non-official trading hours indicate the market maker's attempts to control prices administratively. However, these overnight interventions failed to prevent Tether's rise.

Technical analysts have identified IRR 1mn as Tether's current support level, with potential lower ranges at IRR 980,000 or IRR 960,000 if breached. The resistance level stands at IRR 1.05mn, with possible targets of 106,000 or even IRR 1.08mn if exceeded.

However, the Tehran dollar price remained unchanged from the previous day before experiencing a negative fluctuation mid-day, being sold at IRR 1.39mn.

Analysts note that dollar trading volume was lower than in previous sessions and predict that the dollar price may remain stable at around IRR 1.04mn by the end of the week.

In the official currency market, the dollar decreased to IRR 707,780, according to the Iran Exchange Center, with its transfer rate set at IRR 688,510. The euro traded higher at IRR 767,810, with its transfer rate increasing to IRR 746,890. The UAE dirham also rose to IRR 192,720 in the official market, with its transfer rate trading at IRR 187,470.