* Rupee touches 50.05/dlr, a level last seen Nov. 14 * Traders believe rupee may touch 49.20 in coming sessions * Dollar demand from oil refiners capped gains (Adds details, quotes, updates to close) By Aditya Phatak MUMBAI, Jan 23 (Reuters) - The Indian rupee rose on Monday to hit its highest level in ten weeks aided by dollar flows, which helped the currency navigate the impact of choppy local shares and demand from oil refiners. The rupee ended 50.09/10 to the dollar, 0.5 percent stronger than Friday's close of 50.32/33. It touched a high of 50.05 earlier, a level last seen Nov. 14. Many traders believe the rupee may gain more ground in the coming days and rise to around 49.20 as fears of a meltdown in the euro zone ease and policymakers in Asia's third-largest economy look to boost faltering growth. After market hours, the central bank said in a report that exchange rate pressures have reduced somewhat following the revival of equity flows in Jan. The Reserve Bank of India will review its policy on Tuesday, where it is widely expected to underline growth worries and hold repo rate steady, a Reuters poll showed last week. But expectations of a cut in the cash reserve ratio have grown due to the persisting tightness in overnight rates and the rise in banks' borrowings at the RBI's repo window. "We will have to see if rupee breaks the resistance of 50.00-50.05. If that breaks, then we could see a rise of another rupee," said Hari Chandramgathan, a foreign exchange dealer with Federal Bank in Mumbai. "A month back, there was nothing positive rupee. But the situation has improved somewhat now with euro showing signs of resilience, local stock market is expected to do well and dollar inflows are taking place." Foreign funds have invested around $3.4 billion in local debt and $1.4 billion in equities so far in January, data from Securities and Exchange Board of India showed. The rupee touched a record low of 54.30 on Dec.15 and posted a decline of 16 percent in 2011. But it strengthened 2.41 percent last week, its biggest weekly rise since the last week of October. The stalemate in talks to restructure privately held Greek debt checked gains in European shares and kept the euro steady ahead of a two-day finance ministers meeting that is expected to decide the terms of further aid for Greece. India's local share index ended marginally higher helped by financial shares. One-month offshore non-deliverable forward contracts were quoted at 50.59, indicating some weakness in the short term in the onshore spot rate. In the currency futures market, the most-traded near-month dollar-rupee contracts on the National Stock Exchange, the MCX-SX and the United Stock Exchange all ended around 50.16 on total volume of $4.28 billion. (Editing by Subhadip Sircar)

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