KARACHI, June 30: The rupee gained 3.6 per cent value against the US dollar in the inter-bank market in fiscal year July-June 2002-03.

Senior bankers said the local currency closed at 57.85 to a US dollar on June 30, 2003, up from 60.05 a year earlier.

The rupee gained this much value against the dollar during fiscal year 2002-03, primarily on the back of increased home remittances or the money sent back home by overseas Pakistanis. Pakistan received $3.8 billion remittances in eleven months to May 2003, and bankers estimate that another about $350-400 million has come in June. But figures for June remittances will be available in mid-July.

Increased inflow of remittances coupled with higher foreign direct investment not only led to appreciation of the rupee but, also enabled the State Bank to build up its forex reserves and helped the country book a huge current account surplus in its balance of payments. The reserves currently stand above $10.7 billion.