Foreign exchange risk management strategies once again dictated currency market trends, as investors moved away from riskier currencies toward the dollar.The dollar rose 12 per cent against the Iranian rial, after the EU oil embargo and oil sanctions on Tehran pushed the conversion rate to a record low. The government in Tehran has intervened with a series of stringent measures, banning transactions outside banks and the currency exchange bureaux.Oil futures will solely dictate the future of the Iranian economy and, as a result, their performance on the global currency markets. The EU's ban has been met with similar action from Japan and South Korea, who have both cut back oil purchases from Iran.Russia, China and India still import their oil, but not at a big enough rate to make up the difference. The US has yet to start implementing its own tough sanctions, which points to further gloom in the Middle East.For more information on foreign exchange treasury services and risk management, visit our Corporate FX site