TEHRAN, Iran, JAN 04 (AP/UNB) - Iran's national currency is rebounding from record lows after the country's Central Bank chief vowed to stabilize markets rattled by new U.S. sanctions.

The Iranian rial rose to about 15,600 against the U.S. dollar on Wednesday as fiscal authorities held an emergency session. The rial hit an all-time low of 17,800 late Monday after Washington backed sanctions targeting Iran's Central Bank and oil sectors.

Central Bank governor, Mahmoud Bahmani, says officials are considering increasing banking deposit interest rates to try to stabilize markets.

Iran wrapped up a naval exercises this week that included threats to block vital Gulf oil routes in retaliation for the new U.S. sanctions. The comments helped drive oil prices above $100 barrel.