KARACHI, March 19: The rupee has significantly appreciated against the major currencies in kerb during the last couple of sessions as investors are unloading long positions in them fearing a negative fallout of the Gulf war on their real purchasing values.

The net rise including Wednesday’s 20 paisa comes to about two per cent but on the inter-bank market the appreciation is slightly below it. The exports now may be a bit expensive and imports cheaper, dealers said.

All the three major currencies including dollar, sterling and euro showed a substantial erosion against the rupee in the absence of local demand and large selling, dealers said.

The dollar and sterling were quoted lower against the rupee at Rs57.55 and Rs57.65 and Rs89.90 and Rs90.10 for buying and selling respectively on the kerb market and so did euro at Rs61 and Rs61.15 as compared to Tuesday’s Rs57.75, Rs57.80, Rs90.25 and Rs90.45 and Rs61.25 and Rs61.40 a day earlier.

The local financial markets are in a virtual turmoil owing to war uncertainties and panic selling of foreign currencies in the absence of falling demand from any quarter as the US deadline to attack Iraq ends Thursday morning.

“There is a panic as there are more sellers of the foreign currencies than the buyers,” local currency dealers said. “Both the dollar and the sterling are heading to hit new lows for the last two years.”

The dollar and sterling have during the last couple of sessions depreciated by two per cent against the Pakistan rupee and dealers predict further erosion after the US attacks Iraq. The Euro, which has been ruling strong around Rs62 also eased.

The interesting feature is that both the currencies are being quoted at a discount against the inter-bank rates. In normal currency trading, a reasonable spread between the official and the kerb rates is maintained, with the latter always being at a premium but now the situation has reversed, dealers said.