India rupee at 1-wk high on weak dlr, stocks, flows

* Main share index ends 0.4 pct higher

* Dollar hits a 15-month low versus currency basket

* Foreigners buy $15.3 billion of local equities in 2009

By Anurag Joshi

MUMBAI, Nov 25 - The Indian rupee rose to a one-week high on Wednesday on weakness in the U.S. dollar, gains in the sharemarket and expectations that capital would keep flowing into the country at a healthy clip.

The partially convertible rupee <INR=IN> ended at 46.21/22 per dollar, just off a peak of 46.2025, which was its strongest since Nov. 18, and about 0.3 percent stronger than Tuesday's close of 46.37/38.

"I think dollar weakness overseas, stock market gains and dollar supplies from corporates helped the rupee to strengthen," said a senior trader with a foreign bank.

One-month offshore non-deliverable forward rupee <PNDF> were quoting at 46.14/24, stronger than the onshore spot rate and indicating a bullish outlook.

The dollar hit a 15-month low against a basket of currencies <.DXY> after minutes of the November meeting of the U.S. Federal Reserve showed policymakers saw the U.S. currency's recent decline as "orderly."

India's benchmark stock index <.BSESN> rose 0.4 percent to its highest close in more than five weeks, underscoring expectations that recent hefty foreign buying of stocks would continue. [.BO]

Foreign portfolio buying of about $15.3 billion of stocks this year has helped the rupee rise nearly 13 percent from a record low of 52.2 in early March.

India can absorb $100 billion of capital inflows, nearly double what is expected this year, before it needed to take strong restrictive measures, C. Rangarajan, chairman of the prime minister's Economic Advisory Council, told Reuters on Tuesday. [ID:nBOM105873]

Some other emerging economies, such as Brazil, have taken steps to restrict hot money inflows, so the Indian stance has supported the rupee.

In currency futures <INRFUTURES>, the most traded near-month contracts on the National Stock Exchange and MCX-SX were at 46.24 on both exchanges, from Tuesday's 46.40. ((anurag.joshi@thomsonreuters.com; Tel: +91 22 6636 9038; Reuters Messaging: anurag.joshi.thomsonreuters.com@reuters.net)) ((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com))