Iran preoccupied by plunging currency

Iranian officials, lawmakers and media on Wednesday worriedly snapped their focus on to their country's sanctions-hit economy amid a sudden and accelerating plunge in the currency.

The currency, the rial, was trading at 15,800 to the dollar -- its lowest point ever, and an indication of the fragility of the economy as ramped-up Western sanctions bit.

Concerned lawmakers summoned the economy minister, central bank chief and foreign ministry officials to testify on the economic situation and how Iran could weather more sanctions expected to be applied soon by Europe and the United States.

A report by Mehr news agency on Tuesday -- quickly denied by the foreign ministry -- that vital imports from one of Iran's biggest partners, the United Arab Emirates, had been cut off added to the widespread jitters and seemed to fuel the rial's slide.

The stumble by the currency undercut avowed Iranian policy to keep the rial steady against the dollar. It suggested the central bank lacked the financial firepower to bring the rate under control. Read More