Australian Dollar drops to as low as US$1.19 (AAP) The Australian Dollar has plunged to as little as US1.18 per dollar after US President Donald Trump imposed sanctions on Iran over its nuclear programme.
The US has imposed new sanctions on nine Iranian officials, including its chief of staff.
It also announced new measures against several companies.
The dollar weakened to as much as US2.23 per dollar at 7:00am (AEST) on Thursday morning, the lowest level in nearly six weeks.
The Australian benchmark has fallen as much over the past 24 hours as it has over the previous six months.
The country’s largest bank, ANZ, said on Thursday that it had suspended trading in US dollars and that it would stop accepting US dollars.
The currency has also weakened against a basket of currencies.
US President Trump imposed new US sanctions on Iranian officials over its ballistic missile programme on January 30.
The sanctions were announced as the US announced new sanctions targeting nine Iranian government officials, which it said were linked to its ballistic missiles program.
US Secretary of State Rex Tillerson, meanwhile, has announced a new US-Iran dialogue with his Iranian counterpart Javad Zarif in the coming days.
“This is all happening as we speak.” “
The announcement was met with applause from Iranian currency traders. “
This is all happening as we speak.”
The announcement was met with applause from Iranian currency traders.
“It’s a relief that Trump is acting decisively,” said Mohammad Nader Ali, a Tehran-based economist at the Iranian Statistical Authority.
“Now we can breathe a little easier.”
“Trump’s policy is going to be a major boost for the economy and the Iranian economy.
The Iranian economy has been in recession for a long time, and sanctions are a way of easing the economic pressure.”
Mr Nader said Iran had been “playing with fire” by continuing to take part in international sanctions, adding that it was likely the sanctions would be lifted when Mr Trump left office.
He also said that Mr Trump’s actions were likely to be followed by other steps by the US administration, including further economic sanctions against Iran, an escalation of its support for Syrian President Bashar al-Assad, and the suspension of all US-led military operations in the region.
US Treasury Secretary Steven Mnuchin said on Wednesday that Mr Zarif had agreed to a dialogue with Mr Trump.
The talks have been described as a “last-ditch effort” to defuse tensions over Iran’s nuclear programme, but analysts said it was unlikely to resolve the longstanding dispute between the US and Iran over the issue.
A senior US official, speaking on condition of anonymity, said Mr Zariff had also agreed to resume talks with the Trump administration.
US sanctions have been imposed in response to Iran’s ballistic missile tests in violation of UN Security Council resolutions 2231 and 2231a, which Iran denies.
The United States imposed new financial sanctions on five Iranian officials on January 29.
The latest measures are part of a $1.9 billion economic sanctions package announced by Mr Trump earlier this month.
US Vice President Mike Pence was due to meet Mr Zarasian in the US capital, Washington, on Thursday.
Mr Zarias spokesman told The Australian Financial Journal that Mr Pence had spoken to the Iranian leader “on the phone” on Thursday and the US “is working with the United States in a bid to resolve this issue”.
“This has been a long process and we have reached a breakthrough,” he said.
“As for the nuclear issue, we will continue to work to resolve that issue through negotiations. “
“All of this is in line with our core foreign policy objectives.””
All of this is in line with our core foreign policy objectives.”