The Indian rupee rose to its strongest in nearly two weeks on Friday as gains in the stock market strengthened expectations of capital inflows and the dollar's losses overseas lifted sentiment. The partially convertible rupee ended at 46.81/82 per dollar, off a peak of 46.7350 which was its highest since October 26, and about 0.4 percent stronger than Thursday's close of 47.0150/0250.
"The market expects more reforms from the government after it decided to offload stakes in public sector companies. That should aid the rupee in the near-term," said a dealer with a foreign bank. One-month offshore non-deliverable forward rupee contracts were quoting at 46.76/86, close to the onshore spot rate. In currency futures, the most traded near-month contract traded at 46.89 and 46.8775 respectively, from Thursday's 47.06 and 47.0650.