Iranian rial hits record low at 128,000 to the dollar

The Iranian rial hit a record low against the U.S. dollar on the unofficial market on Monday, amidst a deterioration in the economic situation and the reimposition of sanctions by the United States.

The dollar was being offered for as much as 128,000 rials, according to foreign exchange website Bonbast.com, which tracks the unofficial market.

The currency has been volatile for months because of a weak economy, financial difficulties at local banks and heavy demand for dollars among Iranians who fear the pullout of Washington from a landmark 2015 nuclear deal and renewed U.S. sanctions against Tehran could shrink the country's exports of oil and other goods.