Iran currency at record low as sanctions bite

TEHERAN (AP) - Iran's currency has fallen 16 per cent in a single day to hit a record low against the US dollar and other foreign currencies in street trading.

Street traders said on Monday it reached 34,500 rials to the dollar. It was 29,500 rials on Sunday.

The collapse of the currency is a sign of the impact of Western sanctions imposed over Iran's nuclear programme. The West suspects Iran is aiming to build nuclear weapons, a charge Teheran denies.

The fall came despite the country's inauguration last week of a new hard currency trading center to undercut the black market.