KARACHI, June 24: The rupee gained five paisa against the US dollar in the inter-bank market on Monday. It closed at Rs60.03/ 60.05 per dollar for ready buying and selling against the last close of Rs60.08/60.10.

Senior bankers said the rupee gained on high inflow of home remittances or the money sent back home by overseas Pakistanis.

Besides, the dollar demand from the importers was very low.

On Mondays banks get higher inflow of the home remittances from overseas Pakistanis staying in the Gulf countries where Friday is observed as weekly holiday.

Some bankers said the rupee held firm also because exporters made heavy selling of export proceeds.

“Exporters do not tend to hold dollars now as they know that it is not going to firm up in near future,” said treasurer of a leading foreign bank.

Pakistan’s liquid foreign exchange reserves have risen from $3.2 billion at end-July 2001 to $6.2 billion, allowing the rupee to gain more than six per cent value against the dollar in the mean time.

Some bankers said the State Bank also purchased dollars from the inter-bank market on Monday to hold the greenback above the psychologically crucial level of Rs60. Since the start of this fiscal year in July 2001, the State Bank has been buying dollars from the inter-bank market to benefit the exporters by keeping the greenback strong.