Iran currency plunges to record low as US sanctions bite

Iran's currency has plunged to a record low on Sunday, as cracks in Tehran's economy due to upcoming US sanctions begin to show.

Iran's currency plummeted to 100,000 rials to the dollar, according to Bonbast - one of the most reliable sites for tracking the Iranian currency - and AFP sources.

On other unofficial sites, the dollar was selling up to 116,000 rials.

The rial has lost more than half of its value against the dollar in the past four months, when the countdown to a resumption of US sanctions on 7 August began.

Iran fired the head of the central bank on Wednesday as the government appears unable to stop the rial free fall.

Since announcing it was withdrawing from a nuclear deal with Iran and other world powers, the US administration has stepped up its rhetoric and threats against Iran.

New sanctions against Iran are said to be the toughest in years with the US looking at fully isolating Tehran.

The US has given countries until November to end oil trade with Iran or face sanctions.

Iranians who are concerned about the economic outlook for the country are now buying up dollars to secure their savings.
  

On 7 August, sanctions will resume on Iran buying dollars, trading in gold or other important commodities.

The US has also warned other countries - particularly in Europe - not to deal with Iran, with a long list of companies pulling out of investment plans with Tehran.

Agencies contributed to this story.