KARACHI, Nov 22: The rupee, on Monday, lost six paisa to close at 59.79 a US dollar in the inter bank market against the weekend close of 59.73 on higher demand for foreign exchange.

Bankers said foreign exchange buying for outward payment of 11 million euros or $14 million by a private sector mobile phone company created additional demand for foreign exchange and weakened the rupee.

The rupee has lost 13 paisa or 0.2 per cent value against the dollar after Eid on higher demand for foreign exchange amidst not-too-strong supply, despite the fact that the State Bank has been selling dollars to the banks for financing oil import bills of their clients.

But this practice initiated by the central bank since November, after a huge fall of 5.5 per cent in the rupee value between July-October 2004, has helped the local currency recover more than 2.5 per cent value so far during this month.

INFLOW: Meanwhile, an inflow of Rs3.5 billion through maturity of PIBs or Pakistan Investment Bonds eased the temporary liquidity shortage that the banks were facing until last week. Bankers said the inflow resulted in the fall of overnight call rates from 7.4 per cent over the weekend to 4.5 per cent on Monday.