No rockets, no missiles, Iran's band started playing as soon as Trump won

Donald Trump Victory: With Donald Trump becoming the next President of America, the US economy and the dollar have taken steps towards strengthening. As soon as he won the election, the value of the US dollar increased rapidly, the biggest blow of which has been to the economy of Iran. According to recent reports, the surge in the dollar has led to a record decline in the Iranian currency Rial, due to which the country is facing a serious economic setback. Let us know how the strength of the dollar has affected the Iranian economy and what it means.

Record fall in Rial

After the announcement of Trump's victory, the Iranian currency Rial touched its lowest level against the dollar on Wednesday. During trading, the price of Rial reached 7,03,000 per dollar, which is its lowest level ever. This decline is a major economic setback for Iran, especially at a time when Iran is embroiled in a conflict with Israel. Experts believe that this strength of the dollar may increase further in the future, which may put more pressure on the Rial.

Situation worsened since 2018

In 2015, the position of Iran's currency Rial became very strong after the nuclear deal with many countries including the US. At that time, the value of Rial against 1 US dollar was around 32,000. But in 2018, Trump unilaterally decided to exit this nuclear deal, after which the relations between the two countries became sour. The US imposed many economic sanctions on Iran, which had already weakened Iran's economy. Now, Iran's tension with US ally Israel and Trump's victory are likely to increase geopolitical tensions further.

Tremendous rise in dollar index

The dollar index is seeing a good rise at this time. At present, the dollar index is at the level of 105.23 with a gain of 1.75%, and it is estimated that by December this level can reach 106.50. This rise in the dollar index means that the US dollar is once again gaining dominance over most of the world's currencies. For those who were talking about the recent dedollarization, this situation is going to challenge their ideas. The dollar index has increased by 2.24% in the last one month and by about 2% in the last three months.

Increase in geopolitical tension

The rising strength of the dollar and Trump's return are strengthening US allies, while there is a possibility of further increase in geopolitical tension with Iran. Trump had adopted a tough stance against Iran in his previous tenure and this time too experts believe that his policies can put Iran's economy under more pressure. Trump's victory has given a new turn to geopolitical stability amid growing tensions between Iran and Israel.

Global impact of dollar strength

The strength of the dollar can affect not only Iran but also other developing countries, whose economy is getting weaker against the dollar. In such a situation, the increasing power of the dollar under Trump's administration may lead to changes in global trade and investment flows.

Trump's return has strengthened the US dollar, which will not only affect Iran but also many other economies of the world. It will be interesting to see how the geopolitical changes related to Trump's victory and the status of the dollar will affect the global economy in the coming times.