Iran president blames ‘psychological war’ for dropping rial

Iranian President Mahmoud Ahmadinejad has rejected growing domestic criticism of his economic policies as the national currency slumps to another record low against the dollar.

Street traders said the rial traded as low as 39,000 per dollar on the black market on Tuesday before recovering slightly. A day earlier, the currency hit a record low of about 34,500. Last week it traded at about 24,000 to the dollar.

The Iranian currency has plunged in value this year as the United States and European Union tightened economic sanctions aimed at pressuring Tehran to suspend its controversial uranium enrichment program.

Political opponents of the Iranian president say his economic policies also have contributed to the currency crisis. In a report published Tuesday, Iran’s Fars news agency quoted Parliament Speaker Ali Larijani as saying he believes