As the overseas investors have hiked their purchases in the local equities market, the Indian rupee has climbed up to touch a four-month high.

While the investors are trying to cash-in from the growth opportunities present in the Indian market, Asia's third largest economy, the fact of the matter is that the currency has appreciated on the three last days as well.

In fact, the purchases made by foreign clients have doubled up in the last one month.

Following the trend, the Bombay Stock Exchange (BSE) also moved northwards trying to match the highest ever level touched in January 2008.

Naveen Raghuvanshi, a currency trader at Development Credit Bank Ltd. in Mumbai said that the investors are sure about the direction of the rupee in the coming times as well and the capital inflows that the economy is witnessing at this moment is surely driven by fundamentals at this hour.

For the record, the Indian rupee jumped by .1% to 45.20 per dollar at 10 AM in the morning. Moreover, the rupee has strengthened 4.1% already in the past one month and is second to South Korea's Won in terms of Asia's most used currencies.