MUMBAI (Reuters) - The partially convertible rupee was stronger on Thursday afternoon, buoyed by gains in local shares, which raised expectations for capital inflows, while higher regional peers also underpinned sentiment. * At 1:55 p.m., the rupee was at 48.19/20 per dollar, stronger than its previous close of 48.37/38. The rupee has traded in a 48.10-48.25 band so far during the session. On Wednesday, it had dropped to 48.50, its weakest since July 30. * Traders said they were awaiting the monsoon forecast update due after 4 p.m. for clues of its impact on the Indian economy. * Shares were trading up more than 2.3 percent, joining higher Asian peers, as investor appetite for riskier assets was boosted after the Federal Reserve's comments. * The U.S. Fed said on Wednesday the world's largest economy was showing signs of levelling out two years after the onset of the deepest financial crisis in decades and it moved to phase out one emergency measure. * In the currency futures market, the most traded near-month contract on the National Stock Exchange and MCX-SX were both quoting at 48.22 each, with the total traded volume on the two exchanges at an average $780 million.

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