KARACHI, May 22: The US dollar that had fell below the crucial mark of Rs60 in the inter-bank market on Tuesday made an instant recovery on Wednesday.

Bankers said the greenback gained six paisa against the rupee to close at Rs60.04/60.06 for ready buying and selling against the previous close of Rs59.98/60.00. They said the dollar went up on slight increase in demand from the importers.

“It seems that some importers panicked on disturbing news still trickling in from Pakistan-India borders,” said treasurer of a foreign bank. But a seasoned banker close to the State Bank said the central bank had once again defended the dollar at Rs60 to save the exporters from booking exchange rate losses.

In the kerb market the dollar gained 20 paisa to finish at Rs60.65/60.75 for spot buying and selling against the previous close of Rs60.45/60.55.

A leading money changer who declined to be quoted said the dollar shot up on speculative buying in the backdrop of the rising tension on Pakistan-India borders. He said the dollar also shot up as stock investors turned to foreign currency market after the crash of the stock market in the wake of the war-like situation.

Sources close to State Bank said Foreign Exchange Advisor of the SBP Zafar M. Shaikh summoned more than half a dozen leading money changers on Wednesday and told them to curb speculation against the local currency. They said the money changers promised to refrain from fuelling speculation but informed the central banker that the basic reason for the dollar shooting up in the kerb was that the crash of the stock market had forced people to find alternative source of investment.