Yes, but it breaks the flow if there is another variable. See here:

sub change_me{

  $myvar = somesub();

  local $^I = ".bak";

  @ARGV = "some_file";
  while (<>) {
    s/foo/$myvar/i;
    print;
  }
}
[download]

This code hangs. I just can't wrap my head around what happens to $myvar. If this is a static entry (like above) it completes.