The fear worked, at least in the short term. Open market currency rates, which were at 10 percent premium to interbank a few days ago, are now at a discount of 1 percent. Earlier, the interbank was moving up, as it was chasing the formal open market and that was chasing the informal open market. Now, the chase is still happening, but in the other direction, the formally open market is falling and the interbank is following it. However, the informal open market is missing in action. This all started by the successive meeting of the Army Chief with the business community in Karachi and Lahore to restore confidence, as ... (full story)