QUETTA, Nov 13: Afghani appreciated against rupee by 25 to 30 per cent on Tuesday—highest on any single day in last two years— following reports of collapse of Kabul to the advancing troops of the opposition Northern Alliance.

Money dealers traded 600 Afghanis against one rupee on Tuesday. Just a day before on Monday, one rupee fetched 800 Afghanis in the famous Kandhari Bazar of Quetta.

Kandhari Bazar in Quetta is not the only venue to witness mounting demand for Afghanis but money dealers say that same amount of demand is coming from the Middle East.

Afghani currency notes with picture of ex-King Zahir Shah and Sardar Daud are in greater demand by the buyers, according to money dealers. These currency notes were demonetised by the Taliban when they took over full control in 1995 and 1996.

Money dealers anticipate a rise in Afghani value when a broad-based government is installed in Kabul with all promising prospects of stability.

Abdul Wahab a leading money dealer in the Bazar predicts further rise in Afghani exchange value as according to him “people are buying Afghanis in huge quantities.”

“Installation of a broad-based government in Kabul with promising prospects is bound to push up Afghani currency to respectable levels in the money market,” Abdul Qadir, another money dealer said.

Two months back the Afghani was available in local market at 1200 to 1300 against one Pakistani rupee. However, soon after the US air strikes the currency started gaining value.

Pressure on dollar was also played an important role in increasing the value of Afghani and Pakistani rupee in the open market. Till last month the US dollar’s rate in Quetta market was 65 rupees. However, it dropped to 59 rupees.

On Tuesday the dollar gained, and was available at 60 rupees. Dollar will face more pressure. Heavy rush of financially sound Afghans in the money changing market here seen buying the Afghani was attributed to be the main reason for the rise of the currency in open market this evening.