Mumbai: The traders said that the suspected RBI interference has blockaded the rupee’s path as it moved in the direction of 9-½ year high today, even though falls into the stock exchange were likely to limit its losses.

In early trading, the partially converted Indian currency stood at 39.515/525 per dollar, off an early high of 39.43, and gentler than yesterday’s closure of 39.49/50. Yesterday, it also hit 39.36, its highest peak since March 1998.

The Indian rupee has ascended 12% up till now in the existing year.

The chief trader with a foreign bank said, “The central bank has shown that it will intervene, but will also tolerate steady appreciation -- they know they can't fight the market anymore.”

The latest information showed that the RBI has bought $38.1 billion in a bid to limit the rupee in the first seven months of the existing fiscal, but substantial capital flows have continued to pour into aggressive economy and push the rupee higher.

Foreign funds has purchased around $5 billion of stocks in the 10 sittings after the Federal Reserve slash interest rates on Sept 18, a prime factor behind the rupee’s increase to its highest peaks this week.

After market closure on Thursday, the issue limit on market stabilisation scheme bonds (MSS) that the RBI can utilize to soak up funds issued by its rupee-selling involvement, was brought up to 2 trillion rupees ($50.6 billion) from 1.5 trillion.