MUMBAI, Dec 21 (Reuters) - The Indian rupee extended gains in afternoon trade on Wednesday supported by dollars inflows and gains in the domestic equities on improved global risk appetite. * At 2:32 p.m. (0902 GMT), the rupee was at 52.59/60 to the dollar, stronger from Tuesday's close of 52.87/88 and near the day's high of 52.58. * Traders said comments by a senior government official indicating the government was looking at all options to attract foreign capital inflows helped the currency. * Public statements of top officials from the central bank on supporting the rupee too have helped the sentiment. Subir Gokarn, a deputy governor at the RBI, said on Tuesday the central bank would use other measures to bring stability to the foreign exchange market. * India's main share index was up more than 1.7 percent, bolstered by firmer Asian markets, but investors were wary about sustaining the rise because of sluggish domestic growth. * European stocks rallied and the euro was well bid on Wednesday as investors priced in an improvement in the economic outlook and looked forward to a big take up by banks of the European Central Bank's first-ever offer of three-year loans.

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