Street traders in Iran say the country's currency has struck a new record low against the U.S. dollar, the second consecutive day it has fallen sharply.

They say the rial on Monday dropped some 5 percent, with 25,650 rials now needed to purchase one dollar. A day earlier it fell nearly 7 percent.

The currency's slide is a sign Western sanctions over Iran's nuclear program are biting, although Iran says it has enough reserves and blames nervous markets. The West suspects Iran aims to build nuclear weapons. Iran denies that.

On July 1, the European Union banned import of Iranian oil, and the U.S. tightened sanctions against Iran's banks.

The current official rate is 12,260 rials to the dollar, used only for special purposes such as importing food and medicines.