Mumbai: The Indian currency climbed up today as traders place a bet on abroad investment flows into local equities on the back of stronger Asian markets, but dollar purchases by oil firms and possible RBI interference could limit gains.

In early trading, the partially convertible rupee stood at 39.342/352 per dollar, climbing cleverly from its last day’s closure of 39.42/43, and bouncing back near-decade high of 39.16 hit during last week.

A chief trader with a public banking institution who anticipates the Indian currency to trade in a 39.40-39.33 range on Wednesday, said, “Foreign banks are buying dollars most likely they're expecting some good inflows today, and for the stock index to rise.”

Asian stocks ascended as capitalists’ grabbed securities, which had been hit hard by four continuous sessions of losses.

U.S. stocks were partially aided by explanations from the Goldman Sachs Group chief executive that the investment bank would not confront huge credit losses halting from the U.S. subprime market disaster.

The yen chop down, symbolizing renewal in risk appetite, and a recommencement of carry trades, where capitalists sell low yielding currencies such as Japanese currency, supporting high yielding assets, like the Indian rupee.

Still, the viewpoint of RBI involvement weighed on the Indian currency, with confrontation projected at about 39.30.

Information discharged on Tuesday indicated the central bank has purchased a record 11.87 billion dollars in intervention during September to slow down the rupee's increase.

Analysts told that the RBI has played a dynamic role in annealing the rupee's rise in October and November as well.