India rupee extends gains to 2nd day; Asian units up

* Rupee up in line with other Asian peers, stx surge helps

* Local shares rise nearly 2 pct early following global cues

* Dollar's drop versus majors also helps rupee (Updates to mid-morning)

MUMBAI, Oct 30 (Reuters) - The Indian rupee gained for a second session on Friday with higher regional shares and currencies fuelling the rally, but month-end dollar demand from importers could limit the gains.

At 11:08 a.m. (0538 GMT), the partially convertible rupee INR=IN was at 46.90/92 per dollar, 0.7 percent stronger than its close of 47.21/22 on Thursday, when it had dropped to as low as 47.6250, its weakest since Oct. 5.

"There was a lot of selling in the second half yesterday, today again the offshore flows continue with overall risk appetite picking up globally," said Madhusudan Somani, head of foreign exchange at Yes Bank.

"The rupee has also appreciated along with other emerging market currencies. Also seeing exporter interest to sell, range looks like 46.75/80 on the lower side while it will face string resistance around 46.98 types," he added.

Most Asian currencies were stronger compared to the dollar. For a snapshot see [EMRG/FRX]

The U.S. dollar drifted sideways after retreating against a basket of currencies on Friday as investors waited for more data later in the day which could sour the cheerful sentiment prompted by stronger U.S. growth numbers the previous day. [USD/]