Tehran police deployed tear gas against the protesters, but crowds are gathering around the parliament building.
After U.S. President Donald Trump withdrew from the Iran nuclear deal and re-imposed sanctions on Tehran-including on its oil industry and exports-expected to kick in later this year, the value of the Iranian rial has plunged to record lows against the U.S. dollar on the black market.
The economic sanctions were lifted after the deal was implemented in 2016, but President Donald Trump announced in May that the United States was abandoning it.
The Iranian rial has dropped to 90,000 to $1 on the country's black market, despite government attempts to control the currency rate.
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In the Grand Bazaar, hundreds staged a similar protest, videos posted on social media showed.
As the crowd filed through the streets of the capital calling on others to join them, the size of the demonstration swelled into the thousands.
"Their demands are delivered through the chamber to the government, and these are being pursued by us".
Protester also were heard chanting, "We will die, will take back Iran", and, "Iranians will die, will not accept humiliation", according to Ali Savafi, a member of the foreign affairs committee of the National Council of Resistance of Iran, a political organization based in France.
A wave of demonstrations in December 2017-January 2018 rattled the regime and got worldwide media attention, but there have been few major disturbances reported in recent months. Bazaar families opposed the Shah Mohammad Reza Pahlavi and supported the 1979 Islamic Revolution that replaced him with a Shiite theocracy and elected officials.
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Iran last witnessed mass protests in December, when demonstrations across 75 cities saw more than 5,000 activists arrested and at least 25 killed by security forces.
Violence at those demonstrations, which continued into early January, left 25 dead and almost 5,000 people detained by authorities.
Watch: Iranians stage anti-government protestin central Tehran, June 25, 2018. The government has struggled to tackle persistent double-digit inflation and unemployment.
The dollar's surging black market value also has led the Iranian central bank to ration its supply of the USA currency to Iranians, Shojai said. The Fars news agency, believed to be close to Iran's hard-line paramilitary Revolutionary Guard, made a point Monday to publish an article from the Sobh-e No daily newspaper describing the government as being ready to "bow down to foreign threats and sit at the negotiation table".
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