MUMBAI: The Indian rupee strengthened on Friday on continued foreign fund inflows into domestic shares, but month-end dollar demand from oil companies limited further gains.

Foreign fund inflows into the domestic debt and equity markets have totaled over $3.5 billion so far in December, helping the rupee notch its second consecutive weekly gain.

Traders said the market will continue to monitor the dollar's moves against global currencies next week in the absence of any key domestic trigger.

Traders expect the rupee to move in a 61.50 to 62.60 per dollar range next week.

December inflation data, which will be key for the market to cement views on the future course of monetary action, is due only in mid-January.

The rupee closed at 61.85/86 per dollar compared with 62.16/17 on Thursday. The unit gained 0.3 percent on the week.

Indian shares rose, sending indexes to their second consecutive weekly gains.