MUMBAI: The rupee extended its gains in Monday's afternoon session as the domestic share market rose more than 2 per cent while the dollar's Forex Converter Convert Rs.To weakness against major currencies overseas also underpinned sentiment. At 12:25 pm, the partially convertible rupee was at 48.39/40 per dollar, its strongest since July 7 and 0.7 per cent stronger than its Friday's close of 48.73/74. Shares extended gains to more than 2 per cent as index futures pointed to a higher start for European markets after hopes for a global economic recovery had lifted sentiment across Asia. Dealers said dollar demand from oil companies was preventing a further rise in the rupee. Oil is largest import and refiners are the biggest buyers of dollars in the domestic currency market. The US dollar and the yen ceded further ground on Monday as concerns about the US economy abated and broadly improved corporate earnings lifted risk appetite and regional stock markets. In the currency futures market, the most traded near-month contract on the National Stock Exchange and MCX-SX was quoting at 48.4175 and 48.4200 respectively, with the total traded volume on the two exchanges at about $570 million.

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