MUMBAI (Reuters) - The rupee was largely steady in afternoon trade on Wednesday, rising for the second straight day, as a firm stock market renewed hopes for more inflows and the dollar's weakness versus majors also supported. * At 2:20 p.m., the partially convertible rupee was at 47.25/26 per dollar, stronger than Tuesday's close of 47.48/49. It dropped to a low of 47.80 in early trade, its weakest since May 28. * The dollar eased on Wednesday as investors shifted from the U.S. unit toward perceived riskier and higher-yielding assets on views the global economy and financial system are improving. * Indian shares extended gains to 3 percent on Wednesday afternoon, tracking strong markets across Asia and Europe on a rally in oil and metal prices amid signs of a global economic recovery. * Dealers said there was some dollar demand from oil refiners which was limiting the rise for the rupee. * In the currency futures market, the most traded near-month contract on the National Stock Exchange and MCX-SX was quoting at 47.365 and 47.3675 respectively, with the total traded volume on the two exchanges at about $500 million.

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