The Indian currency gained today along with benefits in its Asian peers, and backed up by a rally in the securities market.

Foreign fund flows into and out of equities remained a major driver for the Indian unit.

The main stock index was on target to record its second weekly increase in three after Monday's yearly budget forecast financial growth to remain strong.

But, soaring oil rates kept traders cautious.

Oil is the country's major import item and refiners are the major buyers of the US currency in the domestic currency market.

At 11:26 a. m., the partially convertible Indian currency remained at 44.965/970 a dollar, firmer than yesterday's closure at 45.035/045.

A senior foreign exchange dealer at a foreign bank stated, "People are not rushing to sell (dollars) as last time we saw a rebound from current levels. Also, direction of oil prices is still not very certain. So oil firms have been in action."

Brent oil climbed above $115 today spurred by distrusts whether a Venezuelan peace plan would conclude Libya's disaster whilst payrolls info from the US are expected to reiterate a recovery in the world's biggest energy user.

Traders stated that profits in the euro on Thursday and the probability of more weakness in the US currency in coming days also backed up the Indian unit.

In the currency futures market, the most traded near-month dollar-rupee deals on the NSE, the MCX-SX and on the US Exchange were all at 45.1550, with the overall traded volume at $1.77 billion.