Boost for Afghan exchange rate

Afghanistan's currency has risen as traders speculate that the crisis gripping the country could lead to a change of government.

Rumours that ageing ex-king Mohammad Zahir Shah is returning have helped, while shortages of food, fuel and other essentials mean paper money is in demand, said traders in Peshawar, western Pakistan near the Afghan border.

"The main reason, according to many people in the market, is the return of Shah," said Amin Kosti, the head of Kabul's main money market where 300 traders do business.

$1 was fetching around 55,000 afghanis, nearly a third down from the 78,500 it was worth last week. In reality it has only returned to near levels before the attacks on the US.

Zahir Shah, in exile in Italy since being dethroned in 1973, has offered to play a role in establishing a transitional government should the Taliban be unseated.