Mumbai: Rupee climbed as Asian stock markets stabilized, regenerating anticipations for foreign capital inflows into local shares.

The partly convertible rupee came up as against its weakest close in over a month on Friday. In late July, it hit a nine-year peak of 40.20.

In the last two sessions, foreigners have purchased $142 million of shares after selling over $600 million so far this month.

According to a local dealer, “There have been some good inward flows over the weekend. Globally too, calm seems to have returned to the markets.”

The traders stated that the heavy dollar selling by a U.S.-based bank in early trades also backed up the rupee's gains.

Worldwide markets have been swayed for weeks by news of problems in banks and monetary funds disclosed to speculative investment in U.S. mortgage and asset-backed markets, actuating worries that the cheap credit that has energized international growth might dry up.