TEHRAN, April 29 (Xinhua) -- The Iranian rial plummeted to a record low against the U.S. dollar on Wednesday, according to the Iranian Students' News Agency (ISNA).

An owner of a money exchange counts the banknotes of Iran's rial. (Photo: Xinhua)

On Wednesday, the dollar traded above 1,810,000 rials in the domestic free market, accelerating a decline that has begun since two days ago, featuring an increase of over 230,000 rials, ISNA reported.

According to the report, the rial depreciated sharply despite a relative stability in the domestic market.

It attributed the slide mainly to the increased local demand for major foreign currencies, adding the euro traded above 2,080,000 rials in the market, and the United Arab Emirates' dirham was priced at 500,000 rials.

Iran's rial has seen a steep decline in value since the United States withdrew from the 2015 nuclear deal in 2018 and reimposed sanctions.

On Feb. 28, Israel and the United States launched joint attacks on Tehran and other Iranian cities, killing Iran's then-Supreme Leader Ali Khamenei, senior commanders, and civilians, and damaging the country's civilian infrastructure.

Iran responded with waves of missile and drone strikes targeting Israel and U.S. bases and assets in the Middle East. A ceasefire was achieved between the warring parties on April 8.