Rupee recovered from two week low

The rupee recovered from two-week lows on Thursday after the central bank refrained from hiking rates as expected, cheering the stock market.The dollar's losses against major currencies also boosted the local currency.India's central bank left interest rates on hold but warned of inflationary risks and unveiled steps to address persistently tight liquidity, adding to the possibility that it will resume monetary tightening in January.The partially convertible rupee closed at 45.34/35 per dollar, after hitting 45.61, its lowest since Dec. 1, and marginally stronger than 45.395/405 at the close on Wednesday.Shares ended in the stock market the holiday-shortened week on a positive note as they notched a 1.1 percent gain, relieved by the central bank's decision to hold interest rates steady.