India, Aug. 25 -- Iran's currency has suffered another sharp fall, with the Iranian rial weakening to a record low of 2.02 million against the US dollar on the open market. The latest decline came as the United States prepared to announce another round of sanctions aimed at increasing pressure on Tehran. Iran's central bank rate was significantly stronger at around 1.5 million rials per dollar, highlighting the widening gap between official and open-market exchange rates.

Why Has Iran's Currency Fallen?

The rial was already under pressure before the US-Israeli attacks on February 28, but months of conflict have added to the strain on Iran's economy. The currency's latest decline reflects growing concerns over sanctions, economic isolati...