November 23, 2001	Friday	Ramazan 7, 1422

KARACHI, Nov 22: The rupee on Thursday gained 13 paisa more to a US dollar in the inter-bank market to close at Rs60.80/60.85 for ready buying and selling.

On Wednesday the rupee had gained 19 paisa against the dollar. Thus the local currency has risen by 32 paisa or more than half a per cent against the greenback in the inter-bank market.

In the open market also the rupee recovered 20 paisa overnight and closed at 61.40/61.70 for spot buying and selling against the previous close of 61.60/61.90. Currency dealers said the rupee rose on the back of increased inflow from overseas Pakistanis who have started sending money back home for pre-Eid purchases.

Senior bankers said the rupee was on the rise due to increased foreign exchange selling by the exporters amidst low demand from the importers.

The rupee remained firm on Thursday despite the fact that it was the first working day after the banks got permission from the State Bank to buy or sell foreign exchange between themselves even when there is no demand or supply by the customers. Bankers said one of the reasons for the rupee stability was that the New York market remained closed on Thursday being thanksgiving day.

“The market had got some supply yesterday but there was no demand today as New York remained closed,” said a senior banker.

The State Bank on Thursday lifted restrictions on the release of foreign exchange by the banks to people travelling abroad in yet another move to further liberalize the foreign exchange market. But bankers said this too would not destabilize the rupee in the days to come because of constant heavy inflows of dollars from the exporters and overseas Pakistanis. Exporters are selling export proceeds promptly as there is not much point in delaying because the gap between the inter-bank and open market exchange rates has fallen below Re1 per dollar. Overseas Pakistanis are sending more foreign exchange through banks rather than through Hundi for the same reason.