India rupee extends gains even as stocks dip

* Rupee gains even as share index ends down 0.3 pct

* Exporters sell dollars on view rupee to extend gains

By Anurag Joshi

MUMBAI, Nov 24 - The Indian rupee strengthened on Tuesday, unwinding early losses as exporter selling of dollars on a view the currency was set to gain further outweighed the impact of a dip in the stock market.

The rupee <INR=IN> ended at 46.37/38 per dollar, off an early low of 46.6450, and 0.20 percent above Monday's close of 46.465/475. It had touched an intraday high of 46.36. After hitting a near one-month high of 46.0 early last week, the rupee fell to a one-week low of 46.75 on Friday and has since traded around the middle of that range this week.

"Exporters pressed dollar sales at 46.50 levels. A few banks with short rupee positions unwound their positions after stocks did not fall to the extent it was anticipated in the morning," said a senior trader with a foreign bank.

The main share index <.BSESN> fell 0.3 percent and traders said the market, which has risen nearly 8 percent this month, was facing resistance with the pace of global recovery yet to show momentum. [.BO]

Foreigners have bought about $15.3 billion of stocks in 2009, helping the rupee recover from a record low of 52.2 per dollar touched in early March, and a rising stock market raises expectations of further inflows.

Last year, net outflows of more than $13 billion had pushed the rupee down by a fifth.

The dollar rose in Asian trading as investors sold currencies associated with risk, and traders said that checked the rupee's rise.

One-month offshore non-deliverable forward rupee <PNDF> were quoting at 46.39/49 per dollar, close to the onshore rupee rate.

In currency futures <INRFUTURES>, the most traded near-month contracts on the National Stock Exchange and MCX-SX were at 46.40 on both exchanges, from Monday's 46.50. ((anurag.joshi@thomsonreuters.com; Tel: +91 22 6636 9038; Reuters Messaging: anurag.joshi.thomsonreuters.com@reuters.net)) ((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com))