KARACHI, July 9: The rupee gained two paisa against the US dollar in the inter-bank market on Tuesday. It closed around 60.12/60.14 to the dollar for ready buying and selling against the previous close of 60.14/60.16.

Senior bankers said the rupee made a modest recovery as the ongoing dollar buying spree subsided on Tuesday. Earlier since July 1 the local currency had lost nine paisa to a dollar as a number of banks were busy buying dollars on behalf of a big multinational company. The company is due to make a $50 million external debt payment this week.

Bankers said the rupee might rise further once the debt payment is over.

In the kerb market the rupee rather shed two paisa to a dollar to close at 60.17/60.22 for spot buying and selling against the previous close of 60.15/60.20. Some money changers said the rupee also traded at 60.25 per dollar.