Indian rupee rises on robust inflows; consolidation likely

* Dollar demand from oil importers checks gains

* Rupee's sharp rise since Jan, euro zone debt worries weigh (Adds quotes, updates to mid-morning)

MUMBAI Feb 22 (Reuters) - The Indian rupee climbed higher on Wednesday buoyed by continuing capital flows into local stocks and debt, although strong demand for dollars from oil importers limited the local currency's rise.

Foreign funds have invested over $8 billion in Indian stocks and debt since the start of January, according to the Securities and Exchange Board of India.

At 10:19 a.m. (0450 GMT), the rupee was at 49.19/20 to the dollar, stronger than Tuesday's close of 49.305/315.

"The Iran situation and a surge in oil prices are making importers prepone payments, but inflows have been very good and is helping rupee absorb some of the pressure," said a senior foreign exchange dealer at a large private sector bank.

Typically oil import payments peak towards the end of a month, but with tighter Western sanctions impacting Iran's trade, domestic oil companies are seeking to settle their outstanding payments to Tehran earlier.

India, which imports about 80 percent of its total oil requirement, is pushing local refiners to reduce oil imports from Iran by at least 10 percent for 2012/13. New Delhi imports about 12 percent of its oil needs from Tehran. [IDL:nL4E8DL5X6]

Global oil prices hit a nine-month high on Tuesday. For stories on oil, click.

A consolidation phase for the rupee is likely, though, given the sharp gains in the currency so far this year and the lingering worries over eurozone debt crisis, said Ashtosh Raina, head of foreign exchange trading at HDFC Bank.

The rupee has rebounded around 8 percent since January after it declined nearly 16 percent in 2011, when it was also the worst performer among major Asian units against the dollar.

Asia markets slipped on Wednesday as relief over Greece's latest bailout turned to doubts that the debt-stricken country can keep to its austerity programme and concern about rising oil prices.

One-month offshore non-deliverable forward contracts were at 49.61.

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 were all around 49.26, on a total volume of $767 million. (Reporting by Aditya Phatak; Editing by Rajesh Pandathil)