MUMBAI: The rupee extended gains in the afternoon session on Wednesday mirroring moves in the local sharemarket, which gained more than 2 percent, while the dollar's losses against major units also supported. At 12:50 p.m., the partially convertible rupee was at 46.03/04 per dollar, its highest since Jan. 22, and stronger than its 46.22/23 close on Tuesday. State-run NTPC Ltd opens a follow-on share sale on Wednesday to raise at least $1.8 billion. The issue closes on Feb 5. Dealers said these flows could also help the rupee rise further. Gains in other Asian currencies were also helping the rupee. Shares extended gains to 2 per cent on Wednesday morning, with financials leading the rally, supported by a rise in global markets. Foreign fund investments into local shares are a key driver for the market and the rupee. Foreigners have been net sellers of $2 billion worth of stocks in 12 of the last 14 trading sessions. One-month offshore non-deliverable forward contracts were quoted at 46.04/14, little changed from the onshore spot rate. In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange and MCX-SX were both quoting at 46.08, with the total traded volume on the two exchanges at about $2.5 billion.

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