Iran interest rates raised to 21%

Iranian president Mahmoud Ahmadinejad has finally agreed to increase interest rates to 21%, reversing his opposition to the move economists said was crucial to supporting the Iranian currency.

The move came as the rial, under pressure after new sanctions targeting Iran's Central Bank, shed about 50% of its value relative to the dollar in the span of a month. The depreciation built on already mounting worries over the country's growing international isolation over its controversial nuclear programme.