* Rupee ends at 60.76/77 per dlr vs 61.215/225 * Hopes of continued stimulus from central banks helps risk assets * Geopolitical concerns soften By Gaurav Pai MUMBAI, Aug 14 (Reuters) - The Indian rupee rallied on Monday to close above 60 per dollar after its best daily gain since the national election in mid-May as anticipation of continued stimulus from central banks globally lifted emerging market assets. Recent geopolitical concerns due to the turmoil in Iraq and Ukraine also eased, while sentiment also benefited from Brent crude falling to 13-month lows. As a result, the rupee rose 0.62 percent against the dollar to post its best weekly gain in three months. Traders said markets would now turn their attention to Prime Minister Narendra Modi's Independence Day speech on Friday amid hopes he would deliver some indication of upcoming economic or fiscal reforms. "It appears that the geopolitical risks will not get out of hand and there is a feeling that the battering of emerging markets shares and currencies may have been overdone. The rupee could stabilise at these levels," said Krishnamoorthy Harihar, treasurer at FirstRand Bank in Mumbai. The partially convertible rupee closed at 60.76/77 per dollar, compared with Wednesday's close of 61.215/225, to post its biggest daily gain since the election of Modi on May 16. The gains tracked higher emerging market assets, with the NSE index closing at its highest in nearly 2-1/2 weeks. Hopes for continued monetary stimulus were kindled by recent economic indicators, including from Germany, which reported its economy unexpectedly shrank in the second quarter. Dealers said the fall in oil prices has aided sentiment. Brent crude oil fell towards $104 a barrel on Thursday while supply remained strong despite conflict in key exporting countries Iraq and Libya. Markets are closed on Friday for Independence Day and on Monday for a local holiday. For the weekahead, see In the offshore non-deliverable forwards, the one-month contract was at 61.09/14 , while the three-month contract was at 61.65/75. FACTORS TO WATCH: * Sterling hits 4-month low * Asian currencies rise on hopes of more stimulus * Euro hovered near its weakest in nine months * Foreign institutional investor flows * For data on currency futures

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