KARACHI, Jan 14: The rupee on Monday gained five paisa against the dollar on speculative selling triggered by the perception that the current border tension with India may be defused after corrective steps taken by the President to curb terrorism.

It was quoted at Rs60.95 and 61.05 for buying and selling as compared to Rs61.00 and 61.10 at the last weekend, according to rates supplied by the Forex Association of Pakistan.

There was no change in the inter-bank dealings as the rupee-dollar parity was maintained at the previous levels.

The rupee has been ruling a bit weak against the US currency as a section of investors were buying the dollar fearing war with India. Holding back of the dollar by exporters, which created shortage in the market was another aiding factor, dealers said.

However, trading was normal as demand and supply was equally matched in the absence of speculative buying.